Dell Stock Gains May Slacken

Dell chief Michael Dell and executives spoke positively about demand trends and expectations for a wave of new spending next year as companies update aging equipment. The rally that's lifted the Dell's shares 55% this year may lose steam after a report indicated corporate demand for PCs isn't as robust as hoped. The Dell stocks are terribly, egregiously, preposterously, shockingly ahead of the market.

The worst has yet to come. As the economy drifts listlessly going into this holiday season, Microsoft Windows 7 or not, nightmares before Christmas in 2010 and beyond for Dell and tech companies. The unbearable pains are ahead. Tech and bank shares must be a part of a strong market rally. When you see tech shares rolling over, you know there's a problem. That's not a sign of a healthy market. We're not writing the obituary for this market, but it is consolidating, getting far more careful. It is prudent to take some money and some risk off the table.