WT, for the time being, until CYMI breaks important support, I would not make much of this temporary divergence. I think that some funds allocate their monies to sectors, and when you get an AMAT yielding great results, its sucks up money from others in the sector. Once we approach the next earning report for CYMI (or even before, once it becomes evident that CYMI's growth remains intact) money will flow back to it. There is also some money that flows between sectors, recently the SOX, IMHO, was a major beneficiary of disinvestments in the DOT, and now the SOX has to share this with few other hot sectors like biotech, fibre channels, optical networks etc. Since I do not think that the SOX or CYMI have peaked, I think it will come back into vogue and make new highs. If it breaches important support, the story may be changing, but I doubt that CYMI will be the first in the group to do so, thus we should have ample warning from the sox in general. Mind you, I do think that the equip. sector will peak before the chips themselves.
Zeev
Zeev |
