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

To: scott_jiminez who wrote (7957)	1/5/2003 8:31:49 PM
From: Return to Sender	Respond to of 95456

From Briefing.com: Updated: 06-Jan-03 - General Commentary - Based on the sector's sorry performance again in 2002, it wasn't terribly surprising to see investors scoop up some "bargains" in the first week of trading. In fact, we expect more of the same over the next several sessions as short-term traders try to cash in on the usual early year rebound (among last year's losers). Looking at the chart configurations of the major industry groups, wireless (YLS), telecom (XTC) and networking (NWX) are best positioned to extend last week's advance as each trades above its 50-day moving average (with the YLS and XTC indices also above their 200-day moving averages). While the technicals look better for the telecom-related groups, the fundamentals remain discouraging due to oversupply and lackluster demand. Group has been aggressively cutting costs but we are approaching the point at which just getting leaner isn't going to be good enough to justify higher equity prices. Demand has to pick up and right now there's just no real signs of it happening. Consequently, these groups are apt to fall hard if the tone turns more bearish later this month. Another worrisome sign for tech investors is the lack of participation from the three key industry groups we identified several weeks ago -- chips, hardware and software. In contrast to the telecom related groups, all three of these high profile industry indices spent significant time below their respective 50-day moving averages during the December correction. Each is now at or very near these key resistance levels, but failure to decisively move above the 50-day M.A.s would flash a very strong sell signal to technical traders. And without leadership from these groups it would be very difficult for the tech sector to sustain any time of upward momentum. Now it's possible that favorable seasonals help propel all three industry indices back above their 50-day moving averages, thereby greatly improving the sector's technical underpinnings. However, as we're about to head into the teeth of warnings season and the threat of war with Iraq grows more serious with each passing day, it's difficult to imagine traders or the market getting too bulled up right now. Hence, Briefing.com still inclined to sell into any early year gains. Robert Walberg Thanks for the insight into OS10. Futures are up for tomorrow. www2.barchart.com RtS