If You Want Beta…
From September 29, 2001
to present the Semi Holders (SMH) are up 10%. However, in that time frame this
ETF has had two rallies. The first was 83% and the second (which we are now
experiencing) is at +73%. There has only been one sell off that lasted 31 weeks
from week ending March 9, 2002 to October 12, 2002 that netted a -65%. Now that’s
some fuzzy math. Two rallies of over 70% and only one decline of 65% and only
up 10%. So, if it’s beta you’re looking for…take a ride on this amusement park
attraction.
In all seriousness though,
this ETF traded above our first key Fibonacci price resistance zone that ended
at 28.34. Subscribers were alerted to the fact that we had an air pocket between
this zone and the next one that started at 31 and to anticipate a potential
fast move up to that next Fibonacci resistance level. Well, we are now within
striking distance and based on this gigantic Fibonacci wall of resistance I
am lightening up on longs and taking profits in semiconductor land.
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Have a great Thanksgiving!
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