Micron Might Move
During the 1999-2000 bull market it seemed that as went the semiconductor
group so too went the Nasdaq. Whether the SOX can lead the Nasdaq out of its
year-long abyss remains to be seen, but if Wednesday’s action in the
semiconductors can continue in the coming days, it could help shake the techs
out of their doldrums.
One of the top performers in the SOX was memory player Micron
(
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PowerRating) which
gained 5 or 12% to 46.50 on a surge in volume. Micron had put in a long four
months of basing before breaking out of the base at the end of January. Micron
has been pulling back through the first half of February, but the key to the
pullback was the fact that volume slowly dried up.
With positive earnings news from Applied Materials and several analyst
upgrades announced in the chip arena, the SOX saw buyers return en masse.
Micron’s gain came on nearly double its average volume, which signaled that some
of the big boys came for the stock Tuesday. The key now is to watch and see if
the volume and upward momentum can continue.
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