Chasing CHiPs

As we wind down 2016 for a remarkably resilient stock market, a performance chase by fund managers into the unflappable semiconductor sector becomes a more viable scenario. Beyond that, we know a last-minute M&A spree still may materialize before the ball drops in Times Square, as there are many buyout targets still in contention. Regarding actionable trades, there are several prominent chip plays to keep on watch long here, beyond a monster like NVDA. 

One such name is MXL, which has been quiet of late but may be waking up. On the weekly chart, below, note the sideways basing action to digest the explosive rally into the summer months. 

After several months of consolidating, a push into the new year would not be too surprising. 

Elsewhere, natural gas is yawning after its weekly inventory report. I still am keeping UNG on watch as a long idea but likely need to see it at least back over $9.05 to take action.