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Technology Stocks : Intel Corporation (INTC)
INTC 37.66-0.4%2:37 PM EST

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To: Smart Investor who wrote (2698)7/31/1996 8:07:00 PM
From: Cascade Berry   of 186894
 
I don't think the FED will raise rates at all...and even if they did, the bond market has already factored this in by "raising rates" since January of 1995 (remember that terrible decline in bonds last year?...it peaked (along with the DJ Utilities) over a year ago and the stock market has been playing catchup on the downside since then...the CRB index and commodities in general have been very weak as the temporary weather induced rallies in the foods are greatly overextended...if there's so much inflation why isn't gold moving up with the general price level? Most analysts are seeing a weaker economy in the second half...if the bond market bounces big time (which I think it can over the next several months) watch out on the upside for Intel - its relative strength in this market has been AWESOME - once it clears out the overhead in the 75 to 80 level a general P/E expansion of the market as the bond market rallies should carry the stock considerably higher. Great fundamentals, good relative strength and a warming inflation environment = terror for the bears. Last week I purchased Intel Oct. 75 calls. By the way I hate Windows machines in general and use only Macs - but am willing to concede the terrible hammerlock this company has on the world computing PC computing market

Regards
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