RtS, I am mostly cash and waiting for a correction as well. In hindsight, I have not been as aggressive as I should have been in holding stocks over the past several weeks. As noted in a previous post, the gain over the past 6 weeks or so has been very impressive. I still think we are going to get a "pullback" soon, but the 50 basis point interest rate reduction today sure gave the market a boost.
Over the past 5 days, the semi-equips have been on "fire". I think some of the institutions and other "big players" don't want to miss the run-up in the semi-equips when they finally do recover - and we are obviously getting closer and closer to a recovery as time goes by. I think they want to be early into the semi-equips rather than late.
The recent SOX low was on 9/27 at 343.93. It closed today at 520.03 - that's a gain of 51.2 percent! Over the same period, the 4 semi-equip stocks in the index, AMAT, KLAC, NVLS and TER had gains of 47.5, 61.8, 42.6 and 41.3 percent respectively - so they performed pretty much in line with the overall index.
It will be interesting to see over the next few days whether the NASDAQ continues to a higher level, or starts back down for a "retest" of the recent lows.
Don |
