Big Swinging Semi

There is big, big, big picture that says a
thousand words to those who appreciate the orderliness that you can sometimes
find in the markets.

This will also be of interest to those who are trying to gauge the
prospects a better Naz in 2001. From a market-cap-weighted point of view you
should be watching Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)
, Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
, Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating)
,
Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating)
and Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating)
. Healthy patterns and healthy
action in these stocks will help the index as whole.

INTC is bouncing off a five-year trendline. If you measure the
big swing from when INTC first went public to its 2000 high, the 61.8%
retracement of that is right about at the level of this apparent support. This
is a long-term set of relationships that you’ll want to pay heed to if you’re
looking for signs of bottoming in INTC and the Nasdaq as a whole.

I’ll repeat what Kevin Haggerty has said over and over again. You don’t
trade off patterns alone. You wait for setups to occur around patterns.

There are many pieces of the puzzle that need to fit. This is only one of
them.

Have a great weekend,

Eddie

Â