Paul V.>Teri and threaders,
Remember, those sectors 70% above are in the overbought area and those 30% are below are in the oversold area. Note that the Semiconductor Sector is at 41.30%. This is one reason which I believe that any Sector rotation from the big caps will rotate into the SEMI's, AMAT being one of this sector. This may explain why that we have seen a move up today to $35.875 today in AMAT today. The Bull support line is now at $34. I expect that we will have additional movement upward. Hopefully, we will hit and break a triple top ($38) when it hits $39 per share. If this happens then we will have an additional jump upward. We shall see in the next few weeks if my opinions bear me out.<
It is interesting to note the short term leading indicator, 10week moving average %, the bpeuti (electric utilities), the bpguti (gas utilities), and other interest sinsitivity stocks which may give us a direction in projecting the future market are very high. Unless the Fed raises rates, a gulf war, Clinton impeachment, IMO, I do not see anything to derail this market but see only sector rotation.
As Ralph, Prudential analyst stated today, we may see 10000 buy June/July. I am glad I am not on the sideline with cash.
Any opinions?
Naturally, the above is only my opinion and the data which I have reviewed from the Dorsey Wright site. Readers are reminded the old saving, "caveat emptor (buyer/reader beware)."
Paul V. |
