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

To: Donald Wennerstrom who wrote (81346)	10/8/2018 12:48:16 PM
From: robert b furman	2 Recommendations Recommended By Donald Wennerstrom Return to Sender Respond to of 95530

Hi Don, Agreed. One more like that has been BRKS. The announced a sale of a division which will ad $9.65 of cash to their balance sheet. The stock gapped up from 30.38 to 40.00 and has been pushed down to today's low of 31.62. Another case of the market maker pushing the price down to cover the gap up. In my view , it all adds up to Market Makers wanting inventory for an impending run up in price within the entire sector. Adds here must be small and watched with a close stop. This is not investing this is speculating. Capital preservation is the most important thing - unless one practices watching vs buying. <smile> Bob

To: Donald Wennerstrom who wrote (81346)	10/8/2018 12:48:57 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95530

P/E ratios are only good for measuring relative valuations. They do not predict the future. The last time the stock market hit a great trading bottom the Investors Intelligence Poll had more bears than bulls. Please page down to page 7 where in figure 9 you will find that we currently have over 60% bullish newsletter writers and less than 19% bearish: yardeni.com In addition the bottom was also market by two 80% upside days in close succession which I share here with the WSJ data every day. That is not to say the market will not find a bottom and trade on to higher highs. Semiconductors and semi equipment stocks could not lead the market higher as we head to new highs. After all the FED has not inverted the yield curve yet. At this time however semiconductors are not leading as an industry group at all unless you are looking for leadership downward. Page down to find industry data here: barchart.com Yes, stocks are oversold in our favorite industry. Yes, they should bounce higher. But low P/E ratios do not guarantee a bounce. Despite a lot of people saying the market is at great risk the Investors Intelligence Poll is way too bullish. The FED is and will continue to raise interest rates. I put some money into a short term treasury bond fund to get a small return (2% and rising) recently rather than risk it elsewhere. What can I tell you? The newsletter writers in the Investors Intelligence Poll are really only useful for helping to nail down a market bottom. This is not a market bottom. Even though market breadth is awful the major indexes recently all hit new highs. That is a warning. Not an all clear sign in my humble opinion. RtS