Every semiconductor is now made by Microchip Technology (MCHP) until proven innocent. How can it not be so, as the company is simply at the epicenter of technology in every gadget, and when so many companies "look" like this one, as Doug Kass has pointed out?
I could make a case against Analog Devices (ADI), Texas Instruments (TXN), Xilinx (XLNX), Micron Technology (MU), Broadcom (BRCM), and Qualcomm (QCOM). They could join the cases against the oils, the master limited partnerships, the international industrials, and the oil drillers, of which there truly is no bottom. That said, a lot of these stocks should be bought and not sold, especially the oils. That would be my view, unless there is a particular event that can't be gamed.
As I have written earlier, as much as there is a glut of oil, there is enough demand at the $82-to-$85 level to think that it might stabilize. In the end, unlike iron ore, copper, zinc, nickel, or steel, gasoline is in high demand in plenty of areas in the world. We can also sell that gasoline overseas, and in fact, we can't refine it fast enough. There is price-cutting in OPEC, and we have a huge amount of oil coming on line.
Oil is in a bear market, but at $82-to-$85, you begin to see the current level of capitulation in all the master limited partnerships. The oil drillers that are presuming $70-oil and the futures do not indicate that it is likely. There has to be a severe recession to get down to that level, as the price of oil is actually set by worldwide demand rather than financial engineering. There is a storage problem, and a refining problem. There is not enough capacity right now to take care of all the oil, but oil can be withheld. There is a price at which people won't pump oil, but they would still drill. I think the mid-$70s is at that level.
In a bear market, this is getting overdone in front of our eyes. I'm not contradicting earlier views, but these stock prices do not reflect where the futures say we are going. They reflect hedge fund liquidation, which would end at some point.