I see Gottfried already answered your question better than I could. Once again it points out that the most recognizable industry index for the industry does a great job of helping an investor predict group stock performance.
As I pointed out Wednesday afternoon before JNPR dropped its bombshell on the market the Networking Index was forming a double bottom.
stockcharts.com[h,a]daclyyay[pb50,200!d20,2][vc60][iUb14!Uk14!La12,26,9]&pref=G
The technical situation resulted in a strong rise in networking stocks despite bad industry news. I believe that many investors get so lost looking at the individual trees that they miss the overall health of the forest.
But to measure the forest(s) one only needs to look at the biggest and most recognizable indices in general. By using Bollinger Bands, RSI, MACD, Williams %R and candlesticks I'm starting to get pretty high success rates in predicting industry movements. This week the SOX will in my opinion move nicely higher despite never having tested the 50 day moving average.
stockcharts.com[h,a]daclyyay[pb50,200!d20,2][vc60][iUb14!Uk14!La12,26,9]&pref=G
Look at the upturn in the MACD which should cross over by Friday. Look at the William %R on the rise. Look at those constricting Bollinger Bands begging for a breakout higher. INTC is ahead of schedule with their chip design production and after a difficult 2001, future of chip industry looks bright:
biz.yahoo.com
There is early cycle strength in the DRAM industry despite a 10% drop in spot prices lately:
dramexchange.com
AMAT is splitting and seeing upward adjustment in capex pricing from TSM and hopefully other companies soon. Check out this monthly chart on AMAT. It looks like nearly presplit 60 is in the bag to me:
stockcharts.com[h,a]maclyyay[pb50,200!d20,2][vc60][iUb14!Uk14!La12,26,9]&pref=G
Short term I like Don's pick MOT to really outperform. Of course I don't own any MOT yet.
RtS |
