Pravin:
"As I see it, the major risk left in this market is due to the market's refusal to have already collapsed Intel's market cap. Intel has a PE of 60, when it should be no higher than 20. If the P4 buildup that is taking place right now does not sell through this fall, Intel could well go to a PE of 20, with an associated market cap reduction of 133 billion. This would crash both the NAS and the DOW. This market depends on Intel not crashing. Sh*t, I just talked myself into going to cash."
Agreed, a $133 billion hit would be a grim reaper with respect to general market indices...It's in every long's interest that INTC stay pegged to $30, even though, as you rightly, imo, point out that at $30 it is discounting a "best case" scenario for the P4 and economy going forward (not an impossibility, but highly improbable, imo)...Should q3 qnd q4 see red at INTC, look for INTC in the teens and, as you point out, SOXX and Nas well below current support levels of 600 and 2000 respectively...(Technically, any close by INTC below $29 (maybe test today or tomorrow if CSCO is weak going forward) is a danger signal!)... |
