Check out SMH in general and individual stocks like TXN, ADI. By Thanksgiving day, all semiconductor stocks will hit 52 weeks high. ADI is up 1.5 % to 35.40 as I am typing.
Almost all semi stocks are higher than their 50 and 100 days MA. SPY action today was very interesting.First down over 1% and now flat. We have a short term very bullish activity going on.
I did notice the strength in the semis, I own SOXS and its a bit down today, however I have owned SMH many times in the past and if you pull up a long term chart, for nearly the last decade the Philadelphia Semiconductor Index has never broken out, its been stuck in a trading range for 10 years!!!!!! If there was a catalyst to push this sector higher it would have happened by now, between the hundreds of millions of smartphones that have been sold in the last few years alone and the tens of millions of tablets sold in the last 2 years you would have thought that semis would be part of that growth, it didn't happen. Why hasnt this sector moved in 10 years..... There is absolutely no catalyst to propel semis higher... Name some kind of technology coming out today that is going to create the next run up in these stocks like its 1999 all over again.... that this new technology is going to use semis that is going to boost the share prices of Intel, Texas Instruments and KLA tencor etc.....?????
I have heard enough about the flying saucers and the double bottom or whatever you might call it today. Look people, it is not time to be long the semis...period. I will let you know when. I will tell you when to get long the semis.
This is probably why the semis were strong today! TriQuint Semiconductor, Inc. (NasdaqGS: TQNT ) Real Time 7.38 Up 1.45 (24.45%) 3:59PM EDT Last Trade: 7.39 Trade Time: 3:49PM EDT Change: Up 1.46 (24.62%) Prev Close: 5.93 Open: 5.95 Bid: 7.35 x 1500 Ask: 7.36 x 17800 1y Target Est: 7.22 Day's Range: 5.87 - 7.50 52wk Range: 4.66 - 15.20 Volume: 20,007,617 Avg Vol (3m): 5,641,350 Market Cap: 1.22B P/E (ttm): 6.81 EPS (ttm): 1.08 Div & Yield: N/A (N/A
I agree with you on some notes. I did not say "buy 200 shares of SMH and then you can buy a house with its profit in 2 months !!. Check the daily charts of ADI. It is above 50, and 100 daily MA. Check out its weekly chart, it is in up trend. What I said, was that it seems that semi stocks will rise 20% in the next 2-3 months.
October 18, INTC and LLTC will announce the numbers. That should clear some cloud in semi sector. YHOO and AAPL will announce the same day.
Intraday lows at 10am! Lets see if it can hold or if they can rally higher.... Going to be an interesting day.