Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (11544)	5/29/2001 1:52:11 PM
From: Theophile	Respond to of 15615

This fellow usually has a rounded view based upon common sense......Rob Walberg is his name. MartinT <<<<<>>>>> ... Lagging behind will be the optical networking and telecom stocks, as recent evidence suggests that industry conditions continue to deteriorate. briefing.com <<<<>>>>>> Updated: 29-May-01 General Commentary We've said it before, and I'm sure we'll say it again -- when stocks rally in the face of negative news, it's a positive sign... Considering that investors were hit with an ugly semi equipment book-to-bill ratio; earnings warnings from second tier companies such as ADC Telecom (ADCT), Ditech (DTEC), Sawtek (SAWS), Novell (NOVL) and Chartered Semi (CHRT); a series of weak economic reports (New Housing Starts, prel-GDP, Durable Orders and Initial Claims); and an abrupt change in the balance of power in the US Senate, Briefing.com impressed by the fact that they barely flinched... In fact, the Nasdaq ended the week with a modest gain. Looking ahead to this week, trading apt to be quiet as many traders extend their Memorial Day weekends... While we could see another few days of consolidation, Briefing.com expects the sector to make at least one more push to the upside during the current leg of the advance -- underweighted fund managers still looking to add positions... Given favorable momentum, fuel cell, CRM software, entertainment software, storage and PC stocks likely to pace the advance... Would also expect to see a modest rebound in the chip sector... Lagging behind will be the optical networking and telecom stocks, as recent evidence suggests that industry conditions continue to deteriorate. Suggest that traders keep a close eye on sector/market internals, particularly number of new highs, a/d figures and volume totals (especially up/down volume and block trades) for signs of fatigue... Sector has come a long way in a short period... Though we still see room for additional gains over the next week or two, if the internals start to soften, more short-term oriented investors might want to consider reducing exposure to the sector... Earnings warnings season is fast approaching and the news won't be good... Given how severely the sector sold off during the last warnings period, wouldn't be surprised if some traders started to run for cover a bit prematurely... Routinely checking the internals (see Briefing.com's Market Internals page) a good way to keep your fingers on the pulse of market sentiment. Robert Walberg