THE SOX

Those that follow our work know much much the SEMICONDUCTORS matter to us. It is not very often the market is not in sync with this all-important area. The SEMIS have had some decent pressure recently with the result of many names breaking support. With this recent rally,  the SOX bounced up but to our eyes, nothing in the way of a bullish manner. Today, another pin was pulled as TSM warned. This comes after the poor reactions in LRCX and ASML to their numbers. We are now left with just a handful of names that are above support in INTC, MU, CREE, SMTC and that’s about it. At the very least, under-weigh the area for now. Just take a gander of the charts in names like MXIM, XLNX, AMAT, TER, TSM, KLAC and others. Something that must be watched.