Get Your ASML Out of the Road

Earlier in the session the Dutch-based semiconductor ASML saw its earnings number leak online. The firm cut sales and guidance numbers, to the point where the CEO felt it necessary to try to assuage fears from market players.

Still, as I write this into the final hour we have ASML down 17%. Previously, we noted ASML as an actionable short idea with Members in the service without any regard to their numbers, but rather due to the overall bearish chart on a relative (to semi and tech peers) and absolute basis, as seen on the daily timeframe below as price has been operating a good while below a declining 200-day moving average. 

More importantly, NVDA and the semis at-large actually got hit off this development. For the first time in a good while the can't-lose bulls in large cap tech had to deal with actual adversity. Case in point: The semis as a sector are now down a whopping 5% on the session.

That said, with Netflix reporting Thursday evening we have the full gauntlet of major tech earnings fast approaching, which ought to shed light on whether this ASML leak is a sneak previous of disappointment this earnings season or, instead, a one-off novelty from a laggard. 

ON seems like another actionable short idea in the semis as a technical laggard, just like ASML was well before today's leak.