You can only sit in amusement over the large pile of tech-stocks attempting to thumb a ride back to profitability, and respectability. What is most amusing, here, is how certain tech-companies attempt to do this without one iota of change to their business plans. If you do as you always did -- you'll get what you always got. And what they got, isn't working anymore.

On Friday, we saw a fake-out. The Nasdaq clicked up 250 points, and the Philadelphia Stock Exchange semiconductor index was up as well – but -- no cigar. Monday it gave it all back.

Stocks swooned again on Tuesday as Wall Street shunned semiconductor shares amid more bearish earnings news, and braced for the vital numbers from technology bellwethers Intel Corp. (INTC), and International Business Machines Corp (IBM). Both companies are set to report results after the close on Tuesday.

On Edge,
There's still plenty of trepidation among longer-term investors -- many are finding the sidelines pretty comfortable. Everyone wonders if the bigger computer & chip giants, INTC, AAPL, DELL, MSFT, to name a few, have finally blown their executive fuses, and will never fly high again.

This psychic says, the PC is not dead. Relax -- the best is yet to come.

And what about currency pressures in Europe? A real concern? Absolutely; a slumping euro equates to weaker consumer spending.

What about oil prices, and the crisis in the Middle East? A real concern too? Sure; inflamed oil markets only add tension to consumer expenditure.

But even after Israel and the Palestinians agreed to call an end to a wave of bloodshed in the Middle East -- their worst violence in years -- the markets continued their retreat. Everyone said a cease-fire would ignite a market rally -- and it rallied -- for fifteen minutes. Then the sellers came back in.

Many believe the threat of terrorism has not been alleviated.

Others point to mere excesses in the stock market.

The fact remains; tech stocks hover around their 2-year lows.

So the bigger question is, how should tech companies address the slump? I say, there's a simple solution -- make products that are more affordable. And while you're at it, reduce the cost of your current catalog. Don’t do it for the sake of sales in Europe, but, do it for Asia & India as well. Countries like these trip over themselves to get to computer products at lower costs. That's what they're waiting for. In fact, that's what everyone is waiting for.

A Psychic Reading for the Tech Sector,
As I flip through my tarot cards, and gaze over the magick crystals, I see the tech sector lowering its prices. Yes -- a full-blown price war. I see computer companies selling computers for $200 & $300, not $1,000 & $5,000. Everything is on sale. As a result, I see companies selling more-and-more gear; far more then they would otherwise.

And their revenue and earnings are all UP. So are their stock prices.

The oracles suggest further the world is moving closer to that humble vision of "a computer in every home" -- like the TV and the telephone.

All is well.

Fact,
Demand for microprocessors, software, and advanced business equipment will not be lessening any time soon. We need them. But until more sophisticated machines hit the global market -- at deep-discount prices -- machines that put our current set of tools to shame -- nothing will change.

Analysts offer a standard reply, "Shares need a catalyst. Don't expect the company's third quarter earnings after the bell Tuesday to do the trick."

The catalyst is lower prices.