A WAY TO PLAY?

Lots of chatter today about AMD INTC and DELL as the latter finally decides to allow AMD chips into DELL servers. INTC is trading this morning at a three year low under 18 and AMD is up 8%.

A way to play may be to go long SMH with a stop in the 32 area as that ETF has just gotten crushed. The October low was the 32 level so it is a logical area of support. The biggest component of the SMH is TXN with INTC and AMAT 2 and 3. I am not advocating buying INTC even though it is the DOG of the DOW this year down over 25%, as all the analysts expect the EPS numbers to come down further. Buying a 20 PE stock with declining earnings is not a home run trade IMVHO.