Semis Showing The Way:

The semiconductor group continues to thrive, and Monday the SMH recorded an all time CLOSING high, and this is with INTC, the funds second largest holding at 10% now lower by 28% from most recent 52 week highs. This week we will see the groups true colors with some heavyweights releasing earnings reports. Today after the CLOSE NXPI fell and AMKR rose, and tomorrow we get a look at AMD, which was a big beneficiary of INTC’s demise last week. Will a good number already be cooked into the current PRICE? Wednesday brings QRVO LRCX and QCOM, and Thursday XLNX. XLNX will be interesting, as this name was a former best in breed name in the space, yet it has recorded FIVE straight negative earnings reactions down 3.8, 10.7, .8, 3.4 and 17.1% on 4/23, 1/29, 10/24, 7/25 and 4/25/19. It filled in a gap on 7/14 from the 7/2 session, and still trades 20% off most recent 52 week highs. Looking at the WEEKLY chart of the SMH it has amazingly traded very taut on a WEEKLY basis, with the last 3 all CLOSING within just .77 of each other. Breaks above that type of coiling tend to be explosive. So far so good this week, although it still has 4 days to go. Buckle your seat lets.

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