INTC pre-announcement has the potential to take SOX to 870 from its 984 close or if it trading at Feb low of 49$ now, the SOX theoritcally should sell down to 750 area, however lets take a step back from the over charge emotional outburst of selling, look back at the charts and look for that day 5/23.. look at Comp it was at 3146 now at 3828, NDX 3022 it was at 3718, OEX a little better barometer at 732 from 782 close NWX at 918 from 1202 PSE 916 from today's 1076 and SOX at 870 from (*$..
I think SPX was at 1360..
Now we need not a 100 point low but a great deal more of selling on Comp to relate to what was SOX on that 5/23 day, this market has all the potential to discard a sector and go to new sector as it has already done so otherwise IIX should have been at 390-400 instead of plus 500, yes BKX has come down from highs of 900 plus but still in a territory that is 800 plus, from last lows of SOX lot of water has passed under the bridges the last lows of SOX were made when TXN was at 68, LRCX 28 LSI 42 ATML 16 INTC 61, today TXN is at 58 may be 55 after hours or ATML at 15, I will not make the mistake of selling my stocks here rahter look at the most overvalued to buy osme put options.
I see may be another few points on these stocks but nothing in these stocks to short, now the real action would be PMCS and RMBS which were at 135 and 38 when we saw SOX at those low levels today they closed at 235 and 80 respectively. I think that door to 1392 is opened however overnight selling is not my forte, I will hold and try to see some trade in the first few hours, I don't think that SOX impact will lead us back to 5/23 level on the Comp and NDX, that is an important point and we need to know that the leading names have already been severely corrected and if we see SOX at 870 area we may see Comp holding on well without losing 600 points where it was when SOX has touched the lows in May..
VTSS AMAT will be subject to severe selling however I think that market would absorb this news and after testing the 1418 low may hold to 1428 area ready to fall to 1392 on some more pre-announcements.. however it sounds to me still a high level consolidation phase with lot of uncertainities, I will play actively with put options on the SPZ and hold 1400 puts if 1436 is not restored within two hours of open.. |
