Friday, March 25, 2011

INTC a Likely Victim of Window Dressing?

PArt of this rally and the timing of it is caused by Window Dressing, "The Art of Looking Smart" as March will end the first quarter Wednesday, this bounce/rally/whatever you want to call it, corresponds with the end of quarter results so hedge funds and others can present them to clients and prospective clients.

INTC is one stock they may not want to show as having owned and may move to sell it off before Wednesday of next week.

 Since the start of the quarter INTC is down 2+%, but down nearly 8% from the highs. This is a big stock and in most fund's portfolios. If there's a snowball effect of selling, INTC could fall quickly next week.

Here's a brief accumulation zone that's roughly in line with the market (a rising tide lifts all boats), but even so, INTC hasn't shown much relative strength and the distribution pattern is quite overwhelming during the bounce period (a perfect time to sell an unwanted position). INTC has failed to even keep up with the S&P and usually individual stocks will outperform the broader index.

Just something to take a look at.

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