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Technology Stocks : Semi Equipment Analysis
SOXX 312.76+1.1%Dec 8 4:00 PM EST

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To: Gottfried who wrote (45810)11/10/2009 8:30:01 AM
From: robert b furman2 Recommendations  Read Replies (3) of 95536
 
Hi G,

Although we all love to hear your thoughts - your charts are pretty good too!<smile>

G it appears that we are at a bottoming of orders and yet we have price going down.

Lord knows I've been early on many a reversal.

Indulge me and take a look at:
Vsea FOUR WHITE SOLDIERS !,
Intc - four white soldiers,
Klic - almost four white soldiers - one doji in the 3rd day
Lrcx - nice reversal but not as good
Ter - setting up for reversal
Nvls - Nice reversal gaining in strength

It very much appears that we are pulling out of a headfake decline.This reversal is best being lead by the big caps.

This is significant.

If / when the mutual fund investors believe that the semi's are due for a growth period it is expected that their entry will first occur where the liquidity is the greatest.

This provides a wonderful last minute perfect buy for the small investor to pony up into the secondary tier stocks that historically advance a greater percent than the big caps.

I see RSI reversing up accross the entire sector along with Macd bottoming and beginning to cross over up.

Now these can be head fakes but they can also be the beginning of a very nice runup into leadership.

If the big caps continue to lead and the small caps stay low or sideways - it is worthy of an Add to.

An ADD TO you'll most likely wish you'd bet the farm on.

We may have another week of headfake bottoming in the smaller caps,but I'm calling a reversal right here right now!

Buy em while they're cheap boys!!

Here's a view :

stockcharts.com

stockcharts.com

stockcharts.com

stockcharts.com

stockcharts.com

stockcharts.com

Any intraday dip is a gift for a Happy Christmas payoff.IMO

What the catalyst is?

No clue, but I bet all the brokers all of a sudden like them after they've filled up their truck.

It will be a moment od clarity - they see this Christmas going the way of the electronic gizmo and means chips!!

Bob
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