The S&P 500 lost ground for the first time this week Friday, but some positives should be taken out regarding the action. The Nasdaq closed higher after Thursdays powerful 1.8% advance, and miserable earnings from some key transport names would have sent the benchmarks scrambling lower in years past. UPS, an economic bellwether lost 10% and KSU was “derailed”, pun intended, by 5%. Of course there are always concerns. The top performing semiconductor group seems to be sprouting some leaks. Earnings this month from formidable names like MU KLAC XLNX were poorly received. MU lost 3.5% the week ending 1/9 after reporting numbers, although it did turn around intraweek. The week ending 1/16 it plummeted 16% and it was the stocks second consecutive miss as it slumped 9.3% on 10/10/14 as well. KLAC has been demonstrated inconsistency in regards to earnings as well with declines 3 of the last 4 times after releasing numbers. Today it fell 8%, and lost 1.9 and 7.1% on 7/25 and 4/25 respectively. XLNX tumbled 6.1% on Thursday, 14.3% on 7/23 and 9.1% on 4/24. Sure these aforementioned names are among the “old tech” group and perhaps we need to make way for the newer, stronger names like AVGO or NXPI’s which are trading just off all time highs as the “old tech” names continue to flounder. Or an IPHI which rocketed through a pennant, or can be interpreted as a symmetrical triangle pattern Friday jumping 8% and taking out the round 20 handle in the process. Looking back further this stock is on course to move toward all time highs near 27 made back in February 2011 in the intermediate term.

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