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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (6513)	11/5/1997 12:26:00 PM
From: Carl H. Gotsch	Respond to of 9285

Jon, Are you suggesting that there is an inconsistency in the behavior of the semis and Intel? (I am long AMAT, CY, and MTSN; small short position in INTC from yesterday's opening.) It seems to me that investors have concluded that the large devaluations taking place in Asia will create a comparative advantage for Asian exporters and that exporters will be rushing to upgrade and increase their capacity to exploit this opportunity. Intel, on the other hand, faces the opposite problem. Economic slowdown in Asian--and other--economies will hurt final demand. Hence there is a bit of a sell-off. Or is this too pat? --Carl P.S. I expect to cover Intel shortly, but am uncertain about a long entry point.

To: Jon Tara who wrote (6513)	11/5/1997 1:27:00 PM
From: Roger A. Babb	Respond to of 9285

Jon, I agree that it is not logical for INTC and the other tech stocks to continue their divergence. But this market has been defying logic for about a year now. My guess is that INTC will turn back up and the market will test its highs before the next crash.