I would steer clear of semiconductor-equipment sector stocks for now. The industry, as a whole, sells 2/3 of their product to the Asian market. Almost all of these stocks on this list are in that sector.
If you do invest, I would examine them carefully to see where they sell their product. Even so, that may not help, as with decreased demand from Asia, there is likely to be price-cutting pressure.
That said, I love this sector - it is my favorite. It moves as a group, and moves fast. But individual stocks within the sector can have their price moves offset by from a day to a week or so, and it is very easy to play "follow the leader" in this sector. For example, watch when a few of them start reversing through old gaps, and you can pick off the ones that haven't done it yet.
Watch for gap reversals, and bounces off the 50 and 200-day moving averages.
I have a separate Metastock directory set up with all of the stocks in the sector, and I just go flipping through the sector taking notes. When the sector is in play (and when I feel like playing it) I'll review these charts daily, spending just a few seconds on each one taking notes, then go back and revisit the ones that look interesting. |
