Let’s take a look at how the semiconductor stocks fared today. (April 11, 2017)
In this Chart video I want to look at semiconductors ( MUTF:SMH ). This was a pretty meaningful thing to me, the fact that semis were down so much. That is a bad thing; but then they recovered and closed back above the 50-day moving average; that is a good thing, but it is still kind of a thing.
I want to go into this a little bit. The reason is because there was a report that was pretty widely circulated, that Apple ( NASDAQ:AAPL ) is in the process of making their own power management chip, semiconductors. That is kind of a big deal because there are a few iPhones being made and a lot of companies are making a lot of money providing parts. So if Apple ( NASDAQ:AAPL ) is doing it’s own thing or might be doing that, frankly, it is a little bit like Elon Musk with the whole solar power thing and Tesla ( NASDAQ:TSLA ). When one company starts basically becoming it’s own supplier that really cuts out the middle man, good for Apple ( NASDAQ:AAPL ), not so much for everybody else.
We will go through these and you will see; it probably turns out to be a good buying opportunity for these things, because they all DID the same thing ( NASDAQ:LRCX ). By the way, take note here, this date on all these charts is when earnings are due to be reported. These stocks have all had good runs so there is a risk that great numbers are already priced in, we could see these stocks sell-off a bit.
BUT, we could also see them continue. I am zooming out here into 2015, because you can see what has happened here. Plenty of quarters have come and gone and these stocks just keep on going. The trend is intact, I am just looking at this, I am kind of bullish on this sector now because they all did the same thing. Nice consolidation here, KLA-Tencor ( NASDAQ:KLAC ) sold off, it is a nice little hammer pattern. Consolidation, I would say this is a key low here, $94.00. Applied Materials ( NASDAQ:AMAT ), I would say the key low is about 37.50ish. Look at the 50-day moving average on all of this stuff.
Just a couple more: Qorvo ( NASDAQ:QRVO ), Qorvo Gold ( NASDAQ:QRVO ), I would say right here, you know a few days ago it look like, “Oh, this is a big breakout.” It is not really a breakout, it was just a continuation of a move. It wasn’t a real volatility squeeze, it was already drifting higher. Now we just got the end of this correction here.
So all of these, frankly, are looking fine ( NASDAQ:SWKS ). So in essence this thing with Apple ( NASDAQ:AAPL ), it almost seems like it was the pause that refreshes. A lot of selling went on, a lot of weak hands would be flushed out of these stocks. And so I think it kind of like hit the pressure relief valve and now we are ready to move higher again. So in my view, quite a bit happened today, even though most of it was kind of under the radar.