Can Semis Save Tech?
Technology is grabbing most of the financial headlines like it always does, but this time around it is not for the best of reasons. Market prognosticators seemingly incessant bearish slant against the group is almost deafening. My feeling regarding technology, continues to be a “prove it to me”, that you deserve to be in the spotlight for positive leadership. All that matters to me is PRICE. Below is the chart of the SMH, and this one is one to watch, but for the moment is in the penalty box, for a minor infraction, not a 5 minute major for fighting (hockey analogy). The ETF is below its 50 day SMA, and volume is enlarging. One can look at the volume situation in two ways. Distribution by larger players, or the fact that sellers can not show much follow through to the downside? Technology was the worst performer of 11 major S&P sectors Friday, and semiconductors within tech were the softest actor, just below software. Some names are standing out amid tech instability, and they will be the first to run out of the gate when the love for tech returns. Stocks above their 50 day SMAs include MU AMAT AMBA MTSI ONTO and KLIC and these should be among your focal point.