The RF to Light 100 jumped 6% last week, YTD now +5% at 2217. 98 out of 100 stocks moved up, a number I have never seen before. The worst market segment, network systems, climbed 10% while F/O components, the most volatile this year, regained 11%. After this rally, my market oversold indicator is still at 82% and the average P/E ratio is still low at 32. While there is room for "improvement", I would be surprised if the index will exceed the 2502 peak in early May 06 because US growth prospects continues to weaken. A cash/equity ratio of 30:70 is probably prudent. I recorded most of the last quarter's financials - they continued to look good. Total market cap of this index has been up for 5 weeks now, with a big boost from Microsoft's 6% increase.
In the news: Benign US economic figures inspired bond & equity bulls. NASDAQ records biggest weekly gain in 3 years. Renewed investor appetite boosts IT sector which includes chipmakers and mobile telecom equipment makers.
Market oversold indicator: down from 86 to 82%
Market overbought indicator: up from 32 to 43%
New Highs: HPQ, RTN
New Lows: S
Top 5
- last week: Conexant (31%), Mindspeed (27%), Bookham (26%), Broadcom (20%), JDSU (18%)
- YTD : Avici (109%), Sirenza (97%), Broadwing (85%), Hittite (83%), Finisar (75%)
Bottom 5
- last week: Aeroflex (-2%), Sprint Nextel (-1%), California Amplifier (+1%), AT&T (+1%), Amkor (+1%)
- YTD : Vitesse (-51%), HEI (-46%), Powerwave (-43%), California Amp (-39%), Juniper (-36%).
by Sectors: Space & Defense: + 3%, YTD +10%
Communic. Services: + 3%, YTD +16%
Network Systems: +10%, YTD -10%
RF Semiconductors: + 9%, YTD 0%
RF Components: + 6%, YTD + 9%
F/O Components: +11%, YTD +15%
Miscell.: + 7%, YTD + 4%
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RF to Light 100: + 6%, YTD + 5%