Chip Equipment names Breaking Down !

Discussion in 'Stocks' started by Tarzan, Jul 16, 2021.

  1. Tarzan

    Tarzan

    Look at all these former tech market leaders: LRCX, KLAC, AMAT.. All breaking down hard and straight below their 50 day moving averages.
    Also, the memory chip names and equipments names: MU, STX, WDC.. All breaking down just as bad, if not worse. These names are usually leading indicators when it comes to semi conductor names which are holding up thus far. As of now, the only momentum semi conductor names to break down are NXPI and CREE. Lets see what happens to SWKS, AVGO, NVDA and AMD. QCOM still looks somewhat strong.
    If I had to guess, the next chip to fall ( no pun ) will be the semi’s. Perhaps QCOM could be an outlier and continue upward but who really knows. This is just my humble opinion based on the charts.
     
    Last edited: Jul 16, 2021
  2. maxinger

    maxinger

    nonsense!
    don't expect the price to go up linearly.

    simply delete the Moving Average so that it wouldn't appear to be breaking down.

    Chip Equipment names Breaking Down !!!

    --->
    Chip Equipment stocks consolidating !!!

     
    Last edited: Jul 16, 2021
  3. guru

    guru

    Could be just sector rotation. Also today was the end of monthly options expiration, which can also induce reshuffling.
    Too early to make conclusions, while when conclusions can be made then it’s already too late.
     
    TrailerParkTed and longandshort like this.
  4. Relentless

    Relentless

    Internals have been topping / rolling over for some time now.

    Things don't always happen all at once.
     
    SunTrader likes this.
  5. Growth concerns (driven by covid resurgence and supply chain issues as growth peaks) is driving a repricing of risk across the board.
     
  6. SunTrader

    SunTrader

    Yup

    $SOX index TD ROC downhill since end May - also a TD Sell Sequential happened. Currently down at lower BBand :-
    $SOX.png
     
    Last edited: Jul 17, 2021
  7. Tarzan

    Tarzan

    Im assuming thats the RSI and there is an obvious negative divergence on the SOX.
     
  8. Tarzan

    Tarzan

    All the previous highs on the SOX were backed up by similar highs on the RSI but not this time.
     
  9. SunTrader

    SunTrader

    Not RSI but ROC = Rate of Change. Which is simply the close divided by the close 12 bars ago. No highs no lows, and especially no averaging of anything which tends to distort data.
     
    Last edited: Jul 18, 2021
  10. Tarzan

    Tarzan

    I think the sector may get crushed today.
     
    #10     Jul 19, 2021