LT - this is a market of many stocks and not stock market. The techs, led by INTC and the chip stocks, will be firm for a while. If DELL announces some softness going forward, then the techs may have a shot at a dive. Otherwise, I would not bet on this group going significantly lower anytime soon. What is the chance of this happen? One percent?
A war with Iraq will be used as an excuse to take profit but as long as this is not a prolonged war, a few missiles will not make much of an overall dent. Rather, selected groups such as banks and airlines will be challenged. The OSX is diving nicely. Remember a year ago when the majors announced cutbacks with their capital spending and we tried to figure out the significance of impact on the drillers? Well, it's one year anniversary now and they are cutting more. CCI is heading to test $41. It probably will hit it tomorrow. If this support is broken, then high 30's will be the next target. The drug and consumer non-durables are severely overbought and they will let out the steam a bit. But since they have been counted on as defensive stocks, they will not go down much.
You need to cook up your magic to make Michael DELL say something unpleasant out of his mouth. You know his personal secretary right? Anything short of that, the techs will continue to ride their mo-mo train. When leaders such as INTC and DELL and MU (believe it or not) are breaking out from their resistence, the train is 200 cars long and it will take a while to come to a complete halt. |
