Vista is a memory and graphics hog, so when you look at so-called Vista stocks, also look at companies that sell ram and video cards as well as hard drive memory. NDX Vista: MSFT -.07%, INTC -.19%, ATYT - .28%, NVDA -2.83%, DELL + 0.65%
Non NDX Vista plays: MU -10%, AMD -.15%, WDC -1.15%, STX -.70%.
The reason I bring this up is because of the inventory build up that has been hurting the semi group recently. Simply looking at DELL or MSFT does not give you an idea as to what is happening with the core stocks that are supposed to benefit from Vista. They are all down today while NDX rallies, except DELL, but that is suspect, as the stock is always bought by retail on stock market rallies. In other words, how long can we keep going on software and Starbucks? The core group that revolves around computers is not participating today and that includes AAPL, a non Vista play, but a retail force nevertheless.
Granted, these stocks have seen a run-up, but if they are down today while the market is up, then it tells you we have some profit taking coming pretty soon. I'm not saying we collapse, just that players are taking money off the table in key areas that drove the rally earlier.
As we press forward, keep an eye on the biggest beneficiaries from Vista: MSFT, MU, NVDA, ATYT, AMD, INTC and STX.
Non NDX Vista plays: MU -10%, AMD -.15%, WDC -1.15%, STX -.70%.
The reason I bring this up is because of the inventory build up that has been hurting the semi group recently. Simply looking at DELL or MSFT does not give you an idea as to what is happening with the core stocks that are supposed to benefit from Vista. They are all down today while NDX rallies, except DELL, but that is suspect, as the stock is always bought by retail on stock market rallies. In other words, how long can we keep going on software and Starbucks? The core group that revolves around computers is not participating today and that includes AAPL, a non Vista play, but a retail force nevertheless.
Granted, these stocks have seen a run-up, but if they are down today while the market is up, then it tells you we have some profit taking coming pretty soon. I'm not saying we collapse, just that players are taking money off the table in key areas that drove the rally earlier.
As we press forward, keep an eye on the biggest beneficiaries from Vista: MSFT, MU, NVDA, ATYT, AMD, INTC and STX.
This entry was posted
on Thursday, October 05, 2006 at 5:26 PM.
