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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (6933)	11/17/2002 6:40:00 PM
From: Donald Wennerstrom	Read Replies (2) \| Respond to of 95574

Some assessment and advice from Briefing.com Updated: 18-Nov-02 General Commentary Despite mixed to soft economic data and despite the ongoing threat of terrorism/war in Iraq, the sector held up remarkably well last week. Resilience in the face of such negative news suggests that there's still some fight left in the advance. Briefing.com was also encouraged by the way in which the Nasdaq snapped back after testing initial support. Again, fact that buyers (re)emerged after only a brief, well-contained dip, suggests that additional gains are in store over the very short-term. Barring a negative shock then, Briefing.com expects to see the sector/market work its way modestly higher in the week ahead. Look for the Philadelphia Semiconductor (SOX) index, which has lagged much of the group, to start assuming a bigger leadership role - at least if the sector maintains its near-term bullish bias. Leadership stocks in semi group (INTC, TXN, AMAT, KLAC, for example) among last to make serious run at 200-day moving averages. However, as Briefing.com has noted consistently over the past couple of weeks, it's difficult to make a strong case for stocks at current levels given lingering uncertainties over the pace of economic growth, the timing of an earnings recovery and the threat of war. Until investors have greater visibility on these issues, expect trading to be dominated by technicals. And technicals are overextended. Just being overextended doesn't mean the sector/market will go down immediately, but it does indicate limited upside potential (at best) and an increased risk of a sizable correction (at worst). So despite the opportunities for some additional near-term gains, Briefing.com still not excited about chasing the sector at this juncture. Patience remains the more prudent course. Robert Walberg