Semis To The Rescue Once Again?

The semis received an assist from notes that they would receive love on the heels of an infrastructure plan that will be spoken about Wednesday. Truth be told this group has been firm for some time, so to speak about them in a positive manner would really just be an extension of how firm they have been behaving recently. Below we look at the SMH, which is just 6% from the most recent 52 week highs, while the IGV is off a double from there at 12% from its peak made on 2/16. Technology overall was the best major S&P sector performer Wednesday up almost 2%, with the second-best actor in discretionary up less than half of that. The good news is that on a YTD basis the XLK is just the 10th best major S&P sector of 11. Bulls would say that their is a long runway if this power of late can materialize further. Remember there was plenty of M&A activity last year with ADI MXIM, AMD XLNX and MRVL IPHI. That was bullish as companies doing that type of due diligence is a great reflection on their enthusiasm for the tech sub sector. Expect semis to outperform going forward.

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