Bad News Is Good News

The news. It is
a-changing.

More good tidings, and mainly from the
semis.

Oh, and yeah, some company known as
Big Blue — which only comprises 11% of the tech portion of GDP — also had kind
words.

AMD
(
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posted a negative
earnings surprise  — and the stock shot up 23% — mainly from the
constructive guidance it served up.

Xilinx
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missed by a penny,
yet the stock put on 12%.

This is the sort of
bad-news-equals-good-news vibe that has been lacking in the Naz’s various
attempts at bottoming.

Lacking, at least until now.

Meanwhile, Comverse
(
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,
though quite choppy, neared the top of a multimonth base.

The irrepressible Dupont Photomasks
(
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located the winner’s circle for the ninth day.

MBNA
(
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is working on a
three-month base.

Microsemi
(
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is three days
into a handle.

SunTrust
(
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is two weeks into a
handle to go with its seven-month base.

In the real estate market, there are
three primary factors that determine the value of one property relative to
another: location, location, and location.

In the stock market, it boils down to
earnings growth, earnings growth, and earnings growth.

This explains the ability of Cabot
Micro
(
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to leapfrog all other semis in both relative strength and
tone.

Cabot’s earnings have averaged 258%
over the past four years and are expected to amount to +43% and +42% in ’01 and
’02, respectively.

Otherwise, The Great Paradox surely is
the high level of bullish sentiment, possibly the market’s sole abnormality
since the March 10 top.

Even after such a scathing cleanout in
every speculative pocket of the market, the II survey still shows 57% bulls, a
high level, and one that more often corresponds with a top than a bottom.

Still, one indicator cannot and should
not be relied upon.

How and where participants put their $
into the market should.