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

To: Donald Wennerstrom who wrote (28972)	3/1/2006 7:15:37 PM
From: auriculatus	Respond to of 95757

I sure hope we get some "spillover" effect in the morning. Only sold 13% of the CCs that need to go. I will stick with the 27.5s, since Mr. Algo will most likely keep things in a trading range to maximize "churn" for commissions! Sure would be nice though to see NVLS go up another 40 or 50 cents before selling the rest of the calls. Citigroup sure knew what they were doing (getting the weak hands to sell at dumping prices). Amazing, but nothing new.

To: Donald Wennerstrom who wrote (28972)	3/2/2006 2:48:08 PM
From: sixty2nds	Respond to of 95757

12:12 Floor Talk: Semiconductor stocks As we've noted in numerous technical comments in the past 2 days, Semiconductor stocks have shown notable outperformance, although it looks as though some profit-taking has now started. What's interesting is that there has been no identifiable catalyst that sparked the group yesterday morning, at least in terms of news or broker research. The most likely explanation that we've been hearing for the sudden momentum in the group starts with the rally in CSCO (see yesterday's comment). Once CSCO started to rally to new 52-week highs, money managers -- afraid of missing the move -- started buying the CSCO food chain to participate in the momentum, paricularly BRCM, MRVL, PMCS, NETL, CY, IDTI, AMCC and VTSS. Thus, as large-cap semis rallied, this broadened out to the whole group and technical factors spurred further buying... It's also worth noting that semi equipment co NVLS has their mid-qtr update tonight, although we're hearing that no one is expecting blow-out guidance. However, the semi cap equipment space has been on a tear as a capacity buildout continues into 2006. Note that NVLS guided Q1 bookings to be up 10-20% on its last call and noted the industry to be strong, primarily driven by flash. The co's mid-qtr guidance should provide some more color on bookings momentum... So to sum up, CSCO seemed to have sparked the rally in semis, but then technical factors took over as the stocks started to break out.