Semi Signals
When you put the pieces together, it is not hard to tell where the action
will most likely be. A good case in point was the action of yesterday’s
semiconductor index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating). Yesterday, while everyone was preaching
doom and gloom, the index rose off the intraday low and proceeded to climb up
and close near its high for the session.
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Then after the bell, both Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) and Texas
Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) report good news, and tech continues to be strong in the
after hours trading. It is not a stretch to see that the momentum in the morning
will likely continue. This gives you a chance to monitor the semis for a
possible entry into a stock that does not gap as much on the open as the rest of
the group, then wants to play catch up when the stock takes out Monday’s high.
Varian Semiconductor
(
VSEA |
Quote |
Chart |
News |
PowerRating) does just that.
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Learn to get a bead on the market’s likely behavior, and you
will be way ahead. You will not always be correct, but if you get in the habit
of thinking about how events tend to play out, you will have a better chance of
positioning yourself on the right side, and hence improve your chances of making
money.
Until tomorrow,
Duke