Stitch, The techs (and particularly the SEMI's and DD) are the weakest in the link and still in their own bear market, I think. The SOXX actually breached its low yesterday, so you can expect more weakness in the semi segment. However, I think that they are at a place in the cycle where they are ready to bounce. The news is as bad as can be (well, it seems so), the BTB of the equipment makers is under .8 and warnings are coming in at 150% the rate they did the last quarter. I would still stay away from these two sectors in general. I Jumped back into VECO yesterday, but if it breaches 24.5 again, I'll be out. I am still in CYMI as well and my stop loss there is very close as well. The DD's, you know these better than I do, they broke down "en masse" yesterday, and apart of SEG and maybe QNTM, I do not see a good candidate for safe performance. In two weeks however, things might change. I would look at some of the networkers during this decline, particularly CSCO and ASND (stay away from CS it looks cheap and may become cheaper) at few bucks below where they are. There bullish patterns are intact.
Zeev
Rereading what I wrote I noticed that it sounds as if I reccomend staying away from the semi and DD, that is surely true right now, but I think that by the beginning of the week of June 19th, we will start and see irresistible bargain, worth a very good trade for a summer rally. Would'nt you want some AMAT under 25, LRCX under 19, some INTC just under 65 and yes, even some NSM and AMD just around 15 or so. |
