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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (19036)	5/22/2006 3:28:27 PM
From: Gottfried	Read Replies (1) \| Respond to of 25522

Ox, if we still had V-shaped bookings then this would be the time stock prices would peak, since bookings don't have much higher to go. We would all be protesting the stock price's topping. Instead, we haven't seen any price surge. So what's the next step for price? It sure looks like I'd be better off taking profits in steps of a buck or two.

To: The Ox who wrote (19036)	5/22/2006 3:44:59 PM
From: Return to Sender	Read Replies (1) \| Respond to of 25522

TO, we hit new lows on this selling again today. I expect at some point (maybe even it has already started) to see the market rally back up to former levels of support which may serve as resistance. But despite what we all say about bearishness, pessimism and the like very few people are short anything in this sector including me. At long term market bottoms like that of October 2002 that was not true. Perhaps this year will end up more like 1998. The October bottom produced fabulous returns to those with cash available to buy. The trouble, as I see it, is that no one seems to remember what it really feels like to see "Blood in the Street". I guarantee you the market shows even more red than it has lately. Keep in mind that we have not yet seen a correction of even 5% in the S&P 500 since 2002. The volatility in this sector is high. It seems like the market is doing terrible when all you look at is AMAT. But it could get worse if the Dow and S&P 500 breakdown. So far they are holding while the SOX and NASDAQ are not. The key may be in watching the Dow Transports. They are currently up today. On the other hand when the bottom is found and stocks begin to rally again this is where we want to be invested. RtS