Replies to post #726 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[leekramer]

Good post about Richard Russell. He's been around and he's seen this before. The only place for "serious" non-trading money is T-notes and T-Bills.

[Lane Hall-Witt]

Jenna -- Frankly, I couldn't believe Barron's published the interview with Richard Russell: how often do they tell you how it is with the scam artists on the Street? They don't care about you; they care about your money. I about fainted, seeing that out of a Dow Jones publication!

I never thought I'd say this, but the Alan Abelson column is also worth reading. It calls BS on the idea that the news has gotten so bad in the semi sector that things just have to get better from here -- sooner, rather than later. Among other things, Abelson discusses the rampant oversupply problem in the semi sector, the coming price squeeze, and the looming threat of inventory dumping. His source claims that CSCO is on the verge of dumping $800 million in excess DRAM into the market. And what will MU's overall DRAM sales be this quarter? You guessed it: $800 million!

Of course, don't play the news flow: play the market's reaction to the news flow. Lee Kramer is right on the mark with this! But be prepared when the market gets locked back in on the devastatingly bad fundamentals that are shaping up here.