Look to the Chips

Sept. 14, 2005:

The markets have begun pulling back ahead of the Federal Open Market Committee meeting September 20, 2005. Wall Street has actually set itself up for a big disappointment if the Fed decides to raise rates again and stand pat on the all-important statement. That's exactly what I think they will do. The markets will not like that. We won't go down in a straight line, because earnings season starts again in October. The current environment of interest rates are still as cheap as dirt. It's the meeting when they say enough is enough that the markets will rally to new 52-week highs. The Semiconductor (SOX) Index is the best of breed right now, nearing a 52-week-high breakout. Semis are always leading the markets ups or downs, especially in the large tech-laden indexes. But with the cell phone business rocking and rolling, the iPod success at Apple, and sundry other pockets of strength within the chip sector, this is helping the whole semi's sector to move higher against a negative backdrop in tech -- and that in itself could help hold this correction down to a mild move lower and not a crash-and-burn-type pullback.

Jerry Olson

jerryo34@verizon.net

www.buyitbuyitsellitsellit.com

MONDAY, MARCH 15, 2004 


MARKET WATCH 

A Sampling of Advisory Opinion

Jerry Olson Update
1776 Sharpless Rd.
Meadowbrook, Pa. 19046

MARCH 11 - There was a blast overseas this a.m. in Spain that has all futures and European markets down big. I suggest you sit tight here.... I am expecting obviously a slam this a.m., but I'll probably be buying this dip today. I fully understand when outside events hit the markets, they are not the true reasons to go short. Be very careful, as I think we are near an important short-term bottom.
A lot of sectors are rolling over and becoming more and more bearish.... The semiconductor sector always leads the COMPX [Nasdaq Combined Composite Index] up and down, as it moves from oversold to overbought the fastest of all sectors.... It will not test the top again on this next rally. It will make a lower high and then roll over again and...head all the way back down to 22%. As well, the entire tech sector is going to go through this "cleansing" act.

-- Jerry Olson