INTC

[Jack Haddad]

Let's examine INTC's technicals. The stock rallied in the first week of November from a low of 22.58 to 27.50 by the first week of December, without any consolidation in between... It was a 4 week slaughter for the shorts. At the moment, INTC is trading at 25.00 (a 48% fib retracement). However, a concerning technical is that it's trading 48 cents below the highly watched 50EMA; this is not comfortable for me. The good news is that the selling from 25.90 in the last 4 days was really the result of last minute tax selling by small timers, thus placing selling pressure and causing bids to drop significantly.

Come the 2nd of Jan, when the big boys return from hybernation, I anticipate them to jump on INTC becuase it's severely oversold relative to its fundamentals (14 times 2006 earnings). Keep in mind, AMD is trading at 42 times 2006 earnings.

[Jack Haddad]

All eyes are on INTC for the upcoming Consumer Electronics show in Las Vegas this thursday. CEO Otellini will release INTC's new logo brand, the first change in 37 years. Thereafter, he will talk about the 6 new products. Intel is deverting from the PC sector. Theyre going into digital health, wireless consumers, and software platforms. They have added 20000 new employees from all walks of life to work in specialized fields never set in the past. They hired an internist at the Arizona plant whose job is to work with enginners who are designing a chip in a medical device that would aid Parkinson's and Alzheimers patients with vital signs.

Also, Otellini has build a persoanl friendship with Steve Jobs of Apple. This will anger IBM and DELL. Expect a lot of great things from Otellini, as he is organizing INTC and shiftingaway from the legendary Grove era. Read the last edition of Businessweek front cover story on INTC!! It's a must read.

[Jack Haddad]

Sold 25,000 at 25.18

[Jack Haddad]

Bought 25,000 at 25.01 on an oversold technical

[Jack Haddad]

Sold 25,000 at 25.07

[Jack Haddad]

Bought 25,000 at 24.95

[Jack Haddad]

Sold 25,000 shares at 25.20. I would say it my scalp for the day! It appears that a short term support stands at 24.85. G/L

[Jack Haddad]

INTC has touched a daily high of 25.90. This is the level of resistance that I have mentioned several times in the past. INTC needs to successfully graduate from this level to propel higher. Otherwise, we will revist the support of 24.85 again.