Unfortunately I did not act on my theory that we were close to short term top, since SUNW is my core long term holding and I do not trade very frequently. However, I had not anticipated such a punishment of high tech stocks.
Now I tempted to buy some Oct or Nov call options on SUNW, but the precarious market conditions dictate a cautious attitude. Although SUNW's earnings (from what I hear) are in the bag, market perception with respect to high tech has suddenly deteriorated. This is esp. ironic since most high techs (the semis, disk drive, PC makers) are seeing an uptrend in their business. Market leaders such as CSCO, LU, MSFT and DELL will always figure out a way to beat earnings, and retain their high multiples. The MOT, HWP and AMDs will frequently dissapoint, so nothing has changed there either.If INTC says business is rebounding, then tech business health cannot be as bad as the NASD 100 performance in the last week is predicting. A 1/4 or 1/2 point cut by Fed hardly affects the high tech segment.
Consequently, I fail to recognize what the sudden fret (in the last week) is with respect to high tech. I guess the premium for risk has just sky-rocketed, and everybody wants to own treasurys.
Anybody have any idea where SUNW's key technical support points are.
Regards
Alok |
