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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: zainrehanzack who wrote (32557)	8/23/2000 6:41:26 PM
From: IQBAL LATIF	Respond to of 50167

I have noted your few comments.. my reading of the situation would follow your remarks... 1.<SOXX still treading upwards and it seems we have a runaway bull sector.> and 2.<I have my reservations based on news like 'Dot-coms Could Run Out of Cash'. I will maintain the stop profits at 500 on IIX and 1092 on SOX a few points higher from your suggested levels dad.. > Let me deal with the first and the second comment.. The book to bill report highlights that in six of the last nine years we have seen dropping book to bill in July. Important thing to note is that July 2000 bookings came in 79 percent above the previous bookings cycle peak of $1.6 billion. My reading is that semi-equipment manufacturers will benefit a lot from this report. I think AMAT will run to its old highs if this broad rally continues. My only reservations against a sustained rally are low VIX ( volatility VIX.X on www.quote.com) and unfavourable put to call ratio nearly at .78. Another worry of 'overall stock volume' is waning as volume is now touching the 50 days MA, whereas new highs and new lows are improving. The stage of the rally is set sans 'wall of worry' on which the market climbs the sharpest. KLAC and KLIC here deserve a hard look. SOX and IIX can add a lot fuel to this new breakout of Comp above 4000. I anticipate some 'sell the news' selling and a sharp recovery or a flat opening any of this would be ideal. Strong opening with a gap is for me 'short term gain for long term pain' we always revisit the gap and close it whenever we have strong openings in a market making near new highs in SPU. SOX/IIX recovery may help IDTI, a semi conductor-internet story. ENE an energy-internet story is in break out mode. They have done very well so far with index turnaround IDTI and ENE may still represent as play on a pull back to 84$. Since we highlighted these stocks thye have done well, thanks COBOT. ALSC ISSI are good stocks to watch. I like your comments on moving the stop profits higher. I think that DOT slow recovery v/s IIX takes into account some of the concerns highlighted in that article on high cash burn rate of .coms. I have always highlighted that one never goes bust in taking profits.