as predicted by the bollinger bands, i said a 2 pt. move was coming. guess i got my answer as to which direction. temporarily i covered the last of my klac shorts here at 49 area. will reshort bounces however. esp. if we bounce to 50 sma around 49.50.
Watching the soxx. I've read several articles where people are expecting a breakout. If so klac spikes, since it is the best of the equip group. Soxx either put in a double top around the 480 area , or it blows thru to 550. Earnings should be good in the semis and its one of the few sectors that can say that. Might see a pullback to around 450 first. Klac already near 52 week highs, so its a tough call.
They want to take the markets higher but its hard for them to break out at these levels and all the economic news getting worse and worse. No big sellers though. This is the end of the year for most of the mutual funds which might explain last week but overall, they need to pull the markets back for their year end rally in the face of bad news. The worse the news , the better the market does. The wall street games !!
Yeah, you'll probably be right about 4th quarter rally. This year has bucked some of the traditional trends though. January didn't give us the usual rally, and sell in May and go away didn't work. So far, Sept. being the weakest month hasn't panned out, so we shall see.