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Technology Stocks : Semi Equipment Analysis
SOXX 306.14+0.4%Dec 24 4:00 PM EST

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To: sixty2nds who wrote (27537)12/19/2005 4:53:51 PM
From: Return to Sender  Read Replies (2) of 95632
 
I would hold off on buying much of anything until you get the all clear sign.

What do I mean?

Yes, I am talking about market timing.

First start with Les Horowitz's tables, add a little Trend 1 for confirmation, and wait for some positive divergences in the market breadth charts and higher levels of bearishness. Investors Intelligence, the total put to call ratio and even volatility charts at extremes are worth looking at in my humble opinion.

For years I have been expecting a deep sell off in 2006. Well guess what? It might not happen. But it's still possible. Even if all we get is a small pullback there will be a more optimal time to go long than now.

Wait for Les's tables to show a trend score of -99 to -100 with stocks in the group of your interest (semi's) to have very few stocks above their 10 day, 21 day, 50 day and 200 day sma's:

Message 21981888

Confirm your suspicions that the market, sector or industry may be topping or bottoming by using the work provided by Trend 1 here:

investorshub.com

And by looking over as many charts as possible to discover possible divergences that lead to market directional changes:

investorshub.com

investorshub.com

investorshub.com

If you cover these bases properly then picking the right stock will not matter as much because you will be buying when enough dollars are ready to raise the market and short covering will follow.

The trade off is you will miss out on the big runs in individual stocks that can move higher despite trend changes. GOOG has proven to be such a stock until now.

If we do fall back into a bear market though 90% of all stocks will head lower with it.

RtS
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