No. 2 - Bull Market Intact? Chip Stocks Break Out

"Chip stocks break out as blackberrys buzz, gaming gains."
A pesky Alan Greenspan can't stop grumbling about a possible recession with the Former Fed Chief sparking the violent sell-off in the market this past week. Well respectfully, the market today tells a different story about America Mr. Greenspan. Chip stocks are breaking out, which suggests that every corner of this economy is beginning to buzz with number-crunching semiconductors. Is the bull market intact?

Strazzini said, “Semiconductors, like no other sector, discount out into the future. First quarter earnings are going to be flat year over year, maybe even a little bad. But Wall Street is starting to upgrade Analog Devices, Texas Instruments and Xilinx. It’s not going to be a gangbuster first half of the year, but I like the space."

Macke reiterated his call to buy the RTH as a trade.

Adami mentioned Advanced Microdevices. A lot of people are looking to get long in this stock. He still sees problems there as management doesn't seem to understand the pricing competition with Intel . Citing the weak trading volume in the shares today, Adami isn't a buyer. There should have been more conviction in a day like this, but the buyers didn’t real come out, he said.

Bolling said the best-looking chart in the chip space was MEMC Electronic Materials. Strazzini agreed - MEMC is a buy - but he still hates Advanced Micro.

Trader disclosure:
On MAR 6, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders.
Strazzini Owns (MO)
Bolling, Short Nasdaq Futures, Short S&P Futures, Short Corn, Owns Gold, Owns Soybeans, Owns Silver, soybean meal, soybean oil
Macke Owns (JWN)

Questions? Comments?