The RF to Light 100 changed 0% last week, YTD 0% at 2115. Network Systems and RF Semiconductor stocks lost ground again. The market remained oversold. Short selling increased from 3.7 to 4.2% average. Average P/E plunged to 33 - last seen in 3Q05 and 1Q03. It appears that we are in stage III, the top area, of the market cycle and the question is whether we are witnessing a correction within stage III or the beginning of stage IV, the declining stage, in which you do not want to own stocks. Time will tell. It should make an insignificant difference to the economy whether the Fed Rate will stay at 5.25 or climb to 5.5% next week but it appears to be a big deal for Wall Street traders.
In the News: U.S. economic growth prospects have dimmed further with a 0.2% increase in the unemployment rate to 4.8%. Most companies continue to report strong earnings.
Market oversold indicator: up to 85%
Market overbought indicator: down to 34%
New Highs: AVCI, BLS, CMCA, LMT, T.
New Lows: ADCT, BKHM, EDO, JNPR, MXIM, NT, PWAV, QCOM, S, SANM, VRSN, VTSS.PK
Top 5 - last week: Anaren (15%), Herley (15%), Broadwing (13%), Oplink (11%),Aeroflex (7%)
- YTD: Avici (120%), Sirenza (92%), Broadwing (70%), Hittite (57%), Rogers (54%)
Bottom 5 - last week: Vitesse (-19%), Powerwave (-16%), Bookham (-15%), Sprint (-15%), Mindspeed (-14%)
- YTD: Vitesse (-58%), Bookham (-56%), HEI (-49%), Powerwave (-47%), ADC (-44%)
by Sectors:
Space & Defense: 0%, YTD + 9%
Communic. Services: +1%, YTD +17%
Network Systems: -2%, YTD -18%
RF Semiconductors: -2%, YTD - 6%
RF Components: 0%, YTD + 3%
F/O Components: +3%, YTD + 4%
Miscell.: 0%, YTD - 2%
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RF to Light 100: 0%, YTD 0%