“Old Dog Teaching New Tricks?”
The semiconductor group has been under assault and is at the forefront of the tech meltdown. Looking at the SMH it is now 45% off highs made last November. Is the ETF ripe for a countertrend rally higher? Of course, anything could happen but does the group have a new leader it is taking cues from? Way back in the day it was INTC that led the way. Those days are long gone and were replaced by AMD and NVDA. As they stumble can a “blast from the past” step up and take the baton? Below is the chart of MU and this week is looking for a 3-week winning streak, and its fourth WEEKLY CLOSE above the very round 50 figure. It has displayed solid relative strength the last couple of weeks, UNCH the week ending 9/30 and advancing 5.6% last week (the SMH was down 3.8 and up 1.9% the same weeks respectively). The daily candlesticks have proved valuable in predicting short-term tops and bottoms and Tuesday’s bullish engulfing candle could see the name produce a solid year-end run.