Doji Strikes Again?

I have been resolute in my belief that bearish candlesticks are somewhat less reliable in uptrends than bullish ones in downtrends, and with that conclusion, the doji candle last week after a spirited run last week may suggest it is time to shave some core positions to add back at lower PRICES. Technology may see some weakness at the open Thursday, with as of this writing MU down 8% after an ill-received earnings reaction, but the shot across the bow was the bearish engulfing candle on 6/20. Give the name credit for a powerful run doubling since the lows in late February. Semis overall have been under a bit of pressure since the NVDA split two weeks ago with weakness seen in AVGO down 5 sessions in a row before a spinning top candle Wednesday ended the streak. There is potential for this to fill in the gap near 1500 from the 6/12 session, but this name too was overdue for a prudent pullback and its uptrend is still firmly intact. We are all aware of the bearish seasonality (although that seems to come in August and September with the latter recording zero months of finishing higher than where it started the last 4 years down an average of 7%) with the semis overall and that may put some duress upon the overall technology sector and give the group a well-needed rest for a strong second-half push. Notice the 17% average MONTHLY move for the SMH in November since 2020.

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