A Fine Idea if Chips Don't Go Straight to Hell

It has been a spotty summer for chips, indeed. Should they regroup or at least knock out a more defined range for the rest of the summer, I still view Cree as one of the better sleeper, turnaround long plays in the sector.

On the CREE daily chart, below, we can see as much, what price perhaps forming a higher low on this recent dip after significant technical progress since September 2017 after years before that of abysmal action.

We know the likes of AMD have been steadily improving, too. But that chip has plenty more eyeballs on it than CREE, which could easily prove to be a more alluring bull case anyway with their Wolfspeed unit growth. 

As for the broad market, a late-afternoon rotation back into the small caps seems to have kept today's dip shallow, as banks mostly did the heavy lifting this morning when tech slumped.

Summer musical chairs, indeed.