Donald,
the only problem with technicals today is the overwhelming news due out after close today. With DELL, HWP and AMAT reporting, they will move the market tomorrow regardless of what charts say today.
My guess is DELL's report will be confusing, with earnings meeting expectations and the future up to interpretation.
There is almost no chance that AMAT will disappoint in terms of numbers. If they do not meet estimates, they will simply use "one time charge offs". The street will interpret it as positive news, no paying attention to the fact that AMAT is already trading at 2003 prices, providing all goes well between now and then.
HWP is a wild card. Together with MOT, these two probably rank 1 and 2 in terms of worst managed high tech company in the last few years. How they performed last qtr is anyone's guess.
Now if all three came in with better than expected news, I think the rally will be prolonged with new found optimism. On the other hand, if they are less than robust, puts in any tech stocks would be royally rewarded.
If you think my scenario is possible, what would you suggest as the best play today, or should we wait for tomorrow?
Ramsey |
