SMH trade ideas
Semiconductors Don't Like Expensive CreditSemiconductors have been rangebound since rates increased in January. Tech and in particular semis lead the market due to it being capital intensive. Rates have started to lower but semis cannot breakout. Long consolidation patterns usually end with an impulsive move to the top or the bottom. The way semis move will dictate broader markets.
$SMH Darvas Box Break-outI have been watching $SMH since it broke the short term downtrend. It has now moved up to breakout of the top range of the Darvas Box. I'll put my stop just below yesterday's low. The whole of chip sector seems to be perking up. This is a great way to play them without individual stock risk. Ideas, not investing / trading advice.
SMH about to breakoutSMH (the Geek) was resting in the small 4 day week moving laterally but was ready to breakdown on Thursday. But the jobs numbers on Friday being moderately light vs expectations made one more month of positive news for the market signaling "transitory" inflation. That was the turning point as mentioned in my last weeks report. An engulfing candle on Friday and an uptrend MACD makes this extremely bullish. After Fridays action, I see Geek moving higher as 3/4 of the stocks in the group got pummeled way under 21 day ema. This put those stocks this coming week trading above 8 day ema at least. Its possible that it can rest here for a couple of days as well.
SOX, SMH needs to hold hereTheres a saying that SEMIs lead the market. $SMH finally broke an upper band trendline that took alot of work to do because of very little volume. Its tired and wants to rest. This is an important test but bids need to come back. Will June be the month when buyers pile back in? My gut tells me we hit 252 this week then break down again or at least stay above the band. Stocks that had great earnings but got slaughtered will do well. $SMH will be range bound till July earnings.
SMH staying short UpdateSMH daily wants to head up I was short 244
took some off at 227, 3/4 off own 1/4
added a little today so my entry know is 245 just few shares
Weekly says stay short.
Just because I am long term does not mean u dont take some off.
I re add back in later called managing my money
not the stock, same goes for longs