A Hot Attraction Gone Cold

It is not just Qualcomm anymore. 

The semiconductors, as a group, are now under pressure and that seems to be concerning to equities now, too. For a while now, QCOM was deemed a special situation for us inside Market Chess Subscription Services, as we shorted the name recently as well as earlier this year into its massive spike down. 

But the rest of the chips were thriving, for the most part. 

However, recent weakness in AMD NVDA and INTC are part of the short-term issue with the SMH sector ETF now, as it slices through its 50-day moving average this morning. With most of the session ahead of us, I am looking to see if buyers can close back over the 50-day, currently at $77.51. But you can see the surge in the VIX ETFs (UVXY VXX) off this move lower in the chips. 

And as weak as QCOM still looks individually, below on the daily chart, the SMH unwind such a steep uptrend, even if only a bull market correction, may very well look and feel worse than it will actually prove to be several months from now.