Just Chillin’

Idling ahead of the
Fed.

The Nasdaq market could use plenty of
days such as Tuesday, when it basically did nothing.

It was nice to see the Naz’s range
shrink.

The fact that the semis performed well
a day in advance of the Fed decision is another minor plus, with Applied
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,
Novellus
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and KLA
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all notching short-term highs.

And another semi swayed to the
sell-the-rumor-buy-the-news rhythm, aka bad-news-equals-good-news…Chartered
Semi
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beat estimates but also warned that Q1 will come in between 4
and 6 cents a share, miles less than the 38 cents expected…the stock promptly
put on 19%.

In addition, after the close, Applied
warned, its stock retreating trivially.

A few recent failed breakouts
reasserted themselves.

Cabot Micro
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broke to new
high ground on major volume…this despite a faulty, V-shaped handle that showed
an outsized drop of 26% from peak to trough.

Microsemi
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, which
experienced a 20% drop in its handle, attempted to rally out, though turnover
was unimpressive, as was the finish.

IXIA
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, too, though activity
was better.

The success of speculatives like these
is in the best interest of the medium-term player.

As repeatedly mentioned here, durable
advances need a certain amount of speculative sentiment, all too lacking now for
months.

It is nice to see a bell exert
leadership, however the speculative sentiment has an importance all its own.

"Speculation is essential not
merely in the market for stocks but for any market," wrote William P.
Hamilton in 1906. "Somebody must take chances."