Rich, some observations. For this rally to continue, we need to see more breakouts above the mid April highs in individual stocks. So far, in my semi-equips sub groups, only VECO printed a price higher than the mid April high, and in the quintet, only QLGC did. I expect many more will, if this rally is "for real", but if those mid April highs are not vanquished soon, then despite the excellent behavior of the S&P and the Dow, I will return to a more cautious stance and reduce exposure from 80% plus equities to the 50% or even lower level. Similarly, in the biotech, only two of those I am in (or follow) have exceeded the mid April highs (AMGN and IMCL), but for instance, both CRA and QLTI are still lagging. Right now, I am waiting for those new recovery highs in the quintet, the semi equips, and the like of MERQ (close) and BEAS (still some way to go...).
Zeev |
