Big Swinging Chips Left Standing
Before I forget, I just want to say…read Tony
Crescenzi’s column today.
After all that’s happened
and with the surrounding negative psychology, major chips have
largely held up. Part of that can be attributed to the fact that they’ve already
been trampled.
There is no doubt that the big bucks have been made on the short side in the
past few weeks. If a major turn comes, you may want watch for leadership among
the semis.
The SOX
(
SOX |
Quote |
Chart |
News |
PowerRating) didn’t get too much of a blow. If the market moves
favorably over the coming weeks (a big IF), then we could see the SOX move up to
the top of the range.
For the past month I’ve been showing you this monthly chart of
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating). It’s holding above a multi-year trendline. Weakness in the
Naz had taken it to the brink of blowing down through it, but the fact that it
didn’t break is a nice confirmation.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) hasn’t lost its footing either.
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) has the earmarks of some classic
basing and accumulation, as evidenced by its price and volume surges.
All in all, I’m looking at a short-term relative-strength play.
Add stocks like these semis to your list of watchables. Keep in them in reserve
if the market starts surprise everybody to the upside.
Wednesday,