The Sky is not falling, We are just rising

This is a text message and short wall post turned blog very quickly so sorry for any errors, just thought I’d share it while its pertinent...

Ok people, Don’t worry about the US (micro) Chip sector, or even the larger Nasdaq [which is almost as heavy into Chips as I am:)]. US crude oil reserve were significantly increased and the most probable political groups to assume power in territories of question over in the middle east have assured even greater contracts that before [so that they can jump start good relations with the US no doubt]. So what happened?

Well, Oil prices dropped far faster and earlier than anyone had thought. All those gambling non-sense speculators on wall-street lost quickly on bets they just made and may not have completely hedged and had to cover their asses, FAST. Best way to do that: Large sell-offs in profitable markets. The US Chip market has been one of the most profitable in decades and during a conventionally off season for them too. Additionally, With so much profits flying all over the place when its usually inventory check-up and filling time got people expectations for their on seasons for above reason. So did the Chip sector just make all their sales a little early? Maybe, but I really doubt it. It was just a great quarter for them and they still have another great one [and many more] to come. Just don’t expect them to be selling more iPads that their are hands to hold them is all, and don’t run around saying the sky is falling.

So if you were kicking yourself for not getting in on that amazing silicon gold over January, then now is an amazing time to scoop up some great deals on it. Some of my fav are Ciena Corp [CIEN] Skyworks solutions [SWKS] and Arm holdings [ARMH]