Thursday, May 10, 2012

Cisco's Message Is Loud And Clear

Cisco is sending a message to traders: "it is no longer safe to hide in tech". Weak guidance from CSCO is going to resonate for a long time. Do not look at today's action alone, it is just the beginning. Do not listen to CNBC telling you CSCO is no longer a tech bellwether. Pure unadulterated nonsense!
Market has a tendency (lately) to delay the reaction. So give traders 24 - 48 hrs to digest and sell everything tech with enterprise spending slowdown exposure, especially if European train derails. Use higher levels due to brief short-covering (which I expected) to sell tech, especially going into Facebook's IPO, which I personally think will be a major top for all tech.

Still no charts and no time to go deeper into the macro news. I am catching up and will put a long post together soon. Stay tuned please...

No comments:

Post a Comment