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March 1, 2006
Huge day for tech, Wed., Mar. 1, 7:20 PM
In response to yesterday's smashing of the equity market, the Plunge Protection Team or the Gnomes, or both, dove into the tech stocks at the opening bell today to try to stop the 2006 Bear Market from starting.
This was institutional buying, probably immense computer-generated program trading orders sent to the market to gain maximum impact " like a professional boxer's power punch to the solar plexus. This buying was not based on corporate fundamentals, quantitative, technical or economic stimuli.
Neither was it widely spontaneous. It was initiated on the instructions of a few very powerful people. Trust me.
I went through the list of my various tech monitors today, and came to the conclusion that only the institutional favorites had any currency today. How deep the pockets are is anybody's guess " unless of course you know exactly who was doing the buying.
What I'm saying here is that if this program started from within the Washington beltway, as I suspect, then their pockets are as deep as your pockets " because it's not their money " it is yours.
I think this Administration is in trouble and this is somebody's plan to get themselves out of a pickle. I really do.
Tell me all you readers with major Wall Street houses: how many "Buy" recommendations were issued last night? Better still, show us. Make us believers today's buying came after careful consideration and Wall Street analysts putting their reputations on the line.
You know what happens when a small group of people try to take control of the capital market, don't you? A large group of people hand them all the stock they want.
People get fooled all the time; but not forever.
So let's see what happens tomorrow and the rest of this week, and next? Let's see how powerful is the "moral suasion" of Washington?
Here is the list of my monitors on the tech stocks, followed by my observations. Not being Merrill Lynch, I did this in 90-minutes tonight " after I read a readers query. And I thought, yes, he deserves an answer.
Internet Service Providers (ISP): NTES jumped last Fri; most others unremarkable
Internet Software, Services & Info: IACI did zip after all the Barron's hype caused Mon. gap opening
IT Consulting & Other Services: Big opening; little follow-through
Data Processing & Outsourced Services: CSC was set up late yesterday to be blown off today
Application Software: ADSK was a blow off; the others (mostly non-institutional) did zip
Multimedia & Graphics Software: Nothing here
Security Software & Services: TMIC blow-off
Systems Software: ORCL and SAP were taken higher; but the rest did zip
Home Entertainment Software: Nothing happening with ERTS (which uses chips)
Communications Equipment -Largecap NA: CSCO, MOT, NT favourites popped; others didn't
Communications Equipment -Midcap NA: CIEN, GLW, JDSU favourites popped; others didn't
Communications Equipment -ex NA: ALA, ERICY (institutional favourites) popped
Handheld Mobile Devices: PALM seems to be the new institutional favorite
Networking & Communication Devices: JNPR and SCMR seem to be the new favorites
Computer Based Systems: CCUR and (later in day) MXWL popped
Computer Hardware "USA: HPQ and, to lesser extent, SUNW popped; but not others
Computer Hardware -ex USA: NEC did nothing
Computers Wholesale: Group strength seemed to be an after-thought
Personal Computers: DELL died after 1st hour; GTW never started
Computer Peripherals: AUO popped at the opening; somebody's favorite
Computer Storage: WDC was strong; STX seemed to be after-thought
Electronic Equipment Manufacturers "USA: Nothing much going on here
Electronic Equipment Manufacturers -ex USA: Nothing going on here
Scientific & Technical Instruments: Nothing going on here
Printed Circuit Boards: Somebody likes BHE
Electronic Manufacturing Services: MOLX enjoyed the day; others didn't
Office Electronics: Nothing going on here
Semiconductor Equipment & Materials: TER, NVLS, ASML, KLAC, LRCX all strong
Semiconductor - Integrated Circuits: SMI (started Tues.), MRVL, FSL, MCHP strong
Semiconductor- Memory Chips: GNSS (started Tues), ATML strong; SNDK popped Mon
Semiconductors -ex-USA: IFX, UMC, TSM, STM and ATYT (a little) popped at open
Semiconductors -Largecap USA: BRCM, AMCC were strong, but INTC moderately so
Semiconductors -Midcap USA: PMCS, ALTR, NVDA were strong; MU, LSI cooled off
Here is my Tech Monitor list. The list needs maintenance, but I do what I can do.
Internet Service Providers ISP
Internet Software, Services & Info
IT Consulting & Other Services
Data Processing & Outsourced Services
Multimedia & Graphics Software
Communications Equipment -Largecap NA
Communications Equipment -Midcap NA
Communications Equipment -ex NA
Networking & Communication Devices
Electronic Equipment Manufacturers -USA
Electronic Equipment Manufacturers -ex USA
Scientific & Technical Instruments
Electronic Manufacturing Services
Semiconductor Equipment & Materials
Posted by Posted by Bill Cara on March 1, 2006 07:20:02 PM | Category: 45 Info Technology
Discourse
Bill, IBM has been flat for a loong time. Do you have any take on that? Btw, thanks for your comments on yesterday's market; they're EYE OPENING (and ominous).
Posted by: AntonCast ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
March 2, 2006 9:35 AM [link]
Wow Bill, your take on what's behind today's move is disturbing to say the least: clear, concise, direct, and damning!
SMH up over 4% (due largely Goldman hyping TXN), but QQQQ up only 1% (on less volume than yesterday's drop), and without participation by the "800lb gorillas" :
CPUs: TXN ^7.8% AMD ^3.6% ... INTC ^0.2%
PCs: HPQ ^3.7% ... DELL ^0.9%
GLW up a bunch too, over 8%
Either "its different this time" or it's about time to get seriously short. I know your approach is to buy on weakness and sell into strength, but do you ever go the other way (short a blow-off top and cover on the spike down) ??
t4k
PS: your comments on today's move MUCH appreciated
Posted by: trade4keeps![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
March 1, 2006 11:24 PM [link]