Have Semiconductor Stocks Topped? 🤔
Semiconductor Stocks
Semiconductor stocks have been on a tear the last few weeks, leading the stock market higher.
The strength can only go so far and we may be seeing signs of a short-term top in these names.
Let’s dive into it.
SOXX ETF
The SOXX has been on a roll, not even testing the 21 SMA for over a week but yesterday’s candle may signal a top as it rejected the wick from the day prior.
Keep an eye on the RSI - if it drops under 70 that may be a signal that the SOXX is going to roll. Look at the last time RSI dropped under 70 and the way it sold off.
Earnings Impacts
We had a few names in the sector report earnings yesterday after hours that are selling off.
KLA ($KLAC) missed on earnings and dropped 5.6% after hours.
Intel ($INTC) also missed on earnings and is down 11% after hours.
These misses are bringing the entire sector down and we may see that weakness continue as investors lock in their gains on these stocks over the past few weeks.
If you are in stocks like NVDA or AMD you should be very careful today and have tight stops.
I review the sector and the earnings in this clip below:
Agree. Shorted AMD above 184. The earning call will disappoint many as Sue is conservative in her forecasting and not one to hype the progress they have made. PE is insanely high at ~13X NVDA.