SMH
The semi's are breaking out with sentiment very low. It looks like a very good long play. Note from DeGraaf:
"We have maintained that technology is currently in the late stages of a secular bottom. There is some historical context in this, as post parabolic moves, and lost leadership generally take the better part of a decade to consolidate and reemerge into a viable money making sector. To this point, the SMH broke out yesterday, and several semi and related names had impressive positive volatility alerts. Such conditions, when they are broad across a sector, suggest legitimate money entering the space. Risks look minimal and other than the summer seasonals, we can not think of much to stand in the way of a bullish technical call."
"We have maintained that technology is currently in the late stages of a secular bottom. There is some historical context in this, as post parabolic moves, and lost leadership generally take the better part of a decade to consolidate and reemerge into a viable money making sector. To this point, the SMH broke out yesterday, and several semi and related names had impressive positive volatility alerts. Such conditions, when they are broad across a sector, suggest legitimate money entering the space. Risks look minimal and other than the summer seasonals, we can not think of much to stand in the way of a bullish technical call."
posted by Never-Limp at 7:17 AM
1 Comments:
FWIW, there's been some anecdotal evidence out here that chips are picking up -- this is mostly based on early readings and estimates of near- to medium-term fab capacity utilization.
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