Hi Ike:
Nice post. Looks like a day with no buyers (demand) just sellers (supply). In the last hour there were only sellers. I guess we can test your 2,966 support on the ndx. The big caps are starting to roll.
The semis were bashed today. This is not good and the semi equips have an accounting issue to deal with as well. Some of my favorites CYMI, LTXX, MTSN, COHU, ASYT, ASML (other stock supply issues here), PRIA, BRKS, are pretty beat up and the carnage can continue. I won't touch an equip co until the accounting issue is resolved.
For chips I like LSI, AHAA & AMD. I like LSI the most.
On the component shortage front flash memory will be the limiting factor in cell phones this year so you may want to look at SNDK. It was spanked late after being up on QCOM news.
QLGC is being shot with FUD. Once it finds a bottom you should look at it. Good news coming out in about 3 weeks when SUNW rolls out its storage initiative (using QLGC & ANCR, which QLGC is acquiring, products with sun servers).
Great comments on waiting to initiate long positions.
I guess the market is digesting / reevaluating multiples growth or no. I like your PEG theory. Unfortunately the market is being indiscriminate right now. Its shooting everyone.
I wonder how much we can rally after the carnage is over with this technical damage. Funds were raising cash late today and if they continue (we won't go there the thought is too unpleasant).
Maybe if Congress passes the China trade bill the selling will stop. At least this would be good for business. Now we only need the Judge to be reasonable in his sanctions of MSFT.
We do have some economic news Thursday and Friday.
Have a good nite.
Tim |
