Feb 8, 2005

Trains can't catch you...

Tried to go through the charts and not read too much into them on a slow day. The only thing that stood out to me was that lots of communication and communication equipment stocks showed up in bullish scans. Makes a lot of sense because the mergers in the sector show that big players have money and also that consolidation (and a return to profitability) is under way.

In the semi sector PMC Sierra stands out by being in a good position to rally.

Commodities look like they are in for a bit of pain as the dollar and bond rally could lead to a deflation scare. Gold and silver are already in the dumps while other sectors like the oil stocks are making highs. Alcoa (AA) looks like it may have put in a bottom so maybe the markets are just sorting out the commidities a bit. Until the dollar and bonds can make tops the space is probably pretty risky.

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