Registered User
Joined: 7/28/2007
Posts: 118
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Just an observation I had while reviewing charts this weekend. There are new issues beginning to appear that are new among the performers that I try to track...(price, volume, chart pattern, BOP, RS) and fundamentals(these are a real pain in the ass to research).
In the Semiconductor sector, specifically the IBD Elect-Semiconductor manufacturing group, there are 3 charts with good fundamentals that have made a pretty strong move up the food chain recently. There are 2 additional charts that appear alongside these that do not look as strong but have made strong price moves as well. The Industry Group has moved from #159 seven months ago to #118 three months ago to the #80 spot today. The 80 spot would not be considered a leading group, but the way these have moved have definitely got my attention.
These five charts have moved anywhere from around 15% to 25% since the March 20 follow through day. They are;
PSEM
MPWR
POWI
ALTR
HITT
Would this be considered sector rotation taking place? Or might this be just the result of short term rally speculation that will not last?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I think all of this relates to Bear Stearns day.
(March 17?)
The are a bunch of factors and all play various
roles.
The fact that the news was recessionary started the
correction in commodities.
The fact that the FED said it would back up bad debt
brought some stability back to the market.
The semiconductor industry had been hit hard during the
downturn and is viewed as having "value".
There was better than expected earnings from GOOG and
INTC.
Tech is viewed as more immune from the "credit crisis".
All these things in various weights are plying a role
in the semi "bounce".
How long it will last is anyone's guess. The right news will
turn things in a hurry.
Thanks
diceman
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Registered User
Joined: 4/18/2005
Posts: 4,090
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Interesting...headline news is 120.00 Oil and falling dollar yet futures are up... may be a whipsaw but so far it seems to be a psoitive reaction to negative news.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Same tune still playing.
Weakness in Gold, commodities, energy,
Latin America, Brazil
Strength in tech, telecom, GOOG, AAPL
We may be entering a period where what was
working doesn't and what wasn't does.
Thanks
diceman
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