I doubt that today's rally will have legs. The SOX already pushed above the upper Bollinger Band today. What is going to keep us moving higher when there really is no evidence of a recovery at hand? Analyst's upgrades are nice when you have as many semiconductor long positions as I do right now but there is no justifiable reason for the upgrades.
From Briefing.com:
12:30PM: The market indices have recently pushed to new session highs. Once again the key semiconductor sector (SOX) has paced the way as it now holds on to a 7% advance. The top gainers in this group today include: ALTR (+10%), LSI (+8.7%), TXN (+7.6%), LLTC (+7.6%), KLAC (+7.5%) and XLNX (+7.3%). The Nasdaq has broken a trendline that stymied the early push and is now eyeing a resistance zone in the 2086/2092 area. The Dow has pushed above its 200 day moving average (failed to hold above yesterday) with the next barrier of interest in the 10,628/10,638 area. In recent news, Pepsi (PEP -2.85) has slumped in the wake of the report that the FTC has cleared the purchase of Quaker Oats (+12.00). Volume is solid with market breadth strong, particularly for the Nasdaq as up volume is swamping down volume by a 4 to 1 ratio. XOI +1.1%, DOT +3.1%, SOX +7%, NYSE Adv/Dec 1807/1099, Nasdaq Adv/Dec 1992/1421 |
