26Jun10:54 amEST

Roll with It or Get Rolled

Beyond headlines regarding positive developments in the U.S./China trade war talks, shares of large cap semiconductor Micron (MU) are jumping more than 12% as I write this to give bulls a breather after yesterday afternoon's slide. 

To be sure, bulls must build on the early strength especially with respect to the small caps in the IWM recapturing at least the $152 level upside for more than just a few moments. 

But with MU galvanizing chips as a whole, we want to take a look at various names in the space which have held up reasonably well or, in some cases like AMD OLED, exceptionally well. 

Names like KLAC MXIM (the latter below on its daily chart) have carved out decent "pocket" consolidations of late and may be ripe to make true progress upside as we head into the third quarter. CREE is another name I have had my eye on for a good while, and continue to view the firm as a strong turnaround play on a multi-year basis. 

Overall, though, it is worth remembering that chips, gauging the SMH sector ETF, were one of the main sore spots for bulls in the month of May as markets corrected. If chips can put together a strong July it would at least go towards the idea of bonafide sector rotation to stave off further bear attempts at a broad market rollover.

In other words, the chips are still very much relevant to broad market composition even if you choose not to trade them, per se. 

Stock Market Recap 06/25/19 ... Day Two

 
BackToTop
 

This website is intended for educational purposes only. | © 2019 MarketChess.com | All Rights Reserved | Website design by Saco Design | Superpowered by Site Avenger

mobile site | full site