It All Started With Micron:
The semis should be thankful for the chart below of “old tech” MU. Sometimes an old dog can teach new tricks. Since a double top near the very round par number dating back to April ’21 and January ’22 it was a pushover for lack of a better term. But starting in Q4 Micron started to demonstrate nascent leadership. In the week ending 9/30, in which it did not crater after an earnings report, MU was UNCH while the SMH slid almost 4%. The following week ending 10/7 more leadership with MU higher by 5.6%, nearly tripling the gain of 1.9% for the SMH. Then the very next week ending 10/14 with MU off just .4% and the SMH cascaded lower to the tune of 8.2%. Since then the SMH has outperformed but perhaps MU was providing comfort while the group gathered itself. The SMH advanced 3 of the last 4 weeks including last week up better than 15% and this week is tacking on another 2% so far. In the latest 13F filings both Viking and Seth Klarman added to their stakes. A big test here for the stock as it approaches its 200-day SMA while cutting into a bearish harami cross from early August.