Semis Solicitous:
The semiconductors are obviously one of the most important groups in tech if not the overall markets. The sector scored a strong move advancing 14 of 17 weeks ending between 12/28-18-4/19, with 2 of the declining weeks CLOSING in the top of the weekly range. The move rose by precisely 40 handles from 80.71 to 120.71, and then proceeded to give back about half the gain. Currently it has rose 5 of the last 6 weeks and is up another 2% this week heading into Friday. The knock on the group earlier this year was that leaders were scarce. That argument is no longer valid. XLNX has been replaced by IPHI AMD KLAC MRVL and AMAT to name a few. It is looking for its second consecutive week of outperforming strong rival IGV which is lower this week by 1%.
New Sheriff In Town?
All good things must come to an end. Within the stock market leaders will lose their luster and be surpassed by more energetic players. TTD was the general within software, and it still is acting well trading just 6% off most recent all time highs and recorded a bullish hammer candle Thursday. But COUP is right at all time highs and has jumped nearly 5% this week so far, compared to TTD which has fallen 1% heading into Friday. There is no trade recommendation here, just an illustration of the contrast with COUP and TTD. Other leaders within software I could have replaced for COUP include SHOP or ADBE. As always use you disciplined approach on an individual stock basis.
Examples:
Big blue which had been feeling blue for quite sometime, started 2019 feeling much better about itself. It now trades just 3% off most recent 52 week highs, and is higher 5 of the last 6 weeks and this week is almost 5% (it rose 13 of 16 weeks ending between 12/28/18-4/12). Below is the chart of IBM and how it appeared in our 7/11 Technology Report. We frequently like to say the best breakouts tend to work out right away, and this name is acting very well POST breakout following the 141.92 cup with handle breakout from 7/12. The stock has lost ground just 10 sessions since June.