Semis Acting As Dead Weight
We are getting a nice bounce today, but the semis are not participating. BRCM and MRVL act very heavy, and I have reduced my exposure to the group.
If we could get the semis to rally, I think the market would head even higher. Also, energy stocks are rallying again, with oil back at $71. But if oil keeps heading higher, that could weigh on the overall market as well. So it's a bit of a balancing act.
Brokers and biotechs are strong today also. GOOG just announced a big deal with DELL, where it will have its search software preinstalled on millions of PCs. This is big news, but the stock is still down. In a better environment, this type of news would send the stock up double-digits.
The put/call ratio is running at a still elevated 0.90. But the VIX/VXN have turned down. Makes me think there is still ample room to rally.