Wednesday, August 11, 2010

Desk Color –No Bounce No Liquidity No Relief- All Hedge Funds Pressing Shorts Today-Tech/Telecom Update - Sentiment has turned very neg $CREE INTC BRCM $TER $INTC $CSCO

images (2) Sentiment has turned very neg. towards tech in the last few days – things started off Tues morning w/a slew of neg. sell-side comments on INTC/PCs (inc. from JPMorgan and also from Barclays/Baird).  Indications from the Asian supply chain point to a large downtick in order patterns in late Jul/Aug, something confirmed by some of the Jul sales numbers published in the last few days.  The whole PC supply chain was sold hard (HDDs, CPUs, memory, OEMs) over the last two days (tech is one of the weakest groups in the whole market of late w/the SOX off ~6% WTD).  Overnight, CREE’s remarks about some softening in consumer LED end markets (signaling weak TV sales) added to the market’s concern about tech.  BRCM was one of the weakest stocks in the whole market after Baird came out this morning and said the co was seeing some softening in its communications orders.

Desk Color – there was a big difference today in semis/hardware vs rest of semis/hw no relief, no bounce, no liquidity; all HFs in semis w/a lot of pressing shorts today; not really any vanilla sellesr in semis, but they are busy pounding hardware.  Away from that, we cont to be much heavier to buy across networking and telco equip.  The disk drives ran into the bell after AVT made somewhat sanguine comments on their call (there was some real demand behind the drive rally)

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