SOX Teeing Up To Kick-Off
Although it is off today, the semiconductor index
(
SOX |
Quote |
Chart |
News |
PowerRating)
has risen as much as 35% since its late-November low and is on the Strongest
Sectors Of The Past Five Days list. The SOX has outperformed the Nasdaq over
this period: the Composite is trading unchanged from November 30, 2000. Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
Xilinx
(
XLNX |
Quote |
Chart |
News |
PowerRating), and Altera
(
ALTR |
Quote |
Chart |
News |
PowerRating), all SOX components, report earnings
this week.
Even though the SOX has outperformed the Nasdaq, there
are still multiple issues within the index that could contribute to more upside.
Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating), Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating),
Micron
(
MU |
Quote |
Chart |
News |
PowerRating), KLA Tencor
(
KLAC |
Quote |
Chart |
News |
PowerRating), and Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) are all working
on three-month bases and now have launch pads they could lift off from.
Xilinx could be key here. XLNX is the second most heavily
weighted stock on the index and has a pattern that most closely resembles the
SOX, an upward-wedging base off the Nov. 30 low. Importantly, recent days’
price-volume action in XLNX have been acting correctly with pullbacks from the
top of the base occurring on lighter volume. XLNX, down 1 9/16 at 48 7/16, is
expected to earn .32.
You can keep tabs on which companies will be reporting
earnings yourself by visiting the TradingMarkets.com Upcoming
Earnings Calendar.