Semis Have Competition:
I always have declared that competition is a good thing in both life and in markets. And within technology, the battle between semiconductors and software has been a healthy one. It has pushed both north and that has benefitted the overall market as a whole. Below is the chart of the SOXX which looked to be forming another bull flag formation, not long after breaking through a prior one. Last week the ETF jumped more than 9% and this week heading into Thursday is giving back about a third of that. This powerful move came not long after the 3-week tight pattern break as the 3 weeks ending between 11/17-12/1 all CLOSED amazingly within just .50 of each other. The IGV MONTHLY chart not looking to be outdone and is acting well POST breakout above a 371.66 trigger taken out last month in the best MONTHLY volume since March. Notice on the RSI it hit a white-hot 90 number back in late 2018, so this is far from overbought on that time frame. Over the last one month period the SOXX has risen by 6% while the IGV has gained the same amount. On a YTD basis, both are up almost 60% and the race is in the final furlong with several sessions left, and the struggle for the win as they vie neck for neck deep into the stretch is real and advantageous for market participants.