The RF to Light 100 dropped 1% last week, YTD +10% at 2356. The Index reached again the "oversold" territory. The average P/E ratio dropped down to 30, a level from which rallies started in the past. True, US economic growth rate is at 0% due to a weak housing market. Again, I doubt that we go from here into a recession because a continued strong world economy, although at a slower pace, is helping us. As you must buy what is low and not buy what is high, you may want to move some cash into equity. At the moment, the market sectors F/O components and RF Semiconductors are low while the communications service sector appears to be peaking. Will see how the mood turns out at next week's mid-term election.

In the news: Employment up, October's ISM's service index up, global input prices down sharply (cheaper gasoline). About 3/4 of US companies reporting 3Q earnings exceeded expectations. Meanwhile US stocks retreated slightly as investors fretted about future earnings growth and hopes faded for a Fed rate cut.

Market oversold indicator: up to 80%
Market overbought indicator: same at 50%

New Lows: EDO, HEI, JDSU

Top 5 - last week: JDSU (13%), Bookham (10%), Agere (7%), Vitesse (6%), EMS (6%)
YTD : Broadwing (151%), Rogers (74%), Avici (73%), Harmonic (71%), Atheros (69%)

Bottom 5 - last week: HEI (-12%), EDO (-10%), Hittite (-9%), Oplink (-7%), Teledyne (-7%)
YTD : HEI (-57%), Powerwave (-51%), Zhone (-39%), ADC (-39%), Bookham (-38%)

by Sectors:

Space & Defense : -1%, YTD +13%
Communic. Services: -1%, YTD +33%
Network Systems : -1%, YTD - 7%
RF Semiconductors : -1%, YTD + 3%
RF Components : -1%, YTD +12%
F/O Components : 0%, YTD +12%
Miscell. : -1%, YTD +10%