Thus far, the once-lagging semiconductors are consolidating their valiant attempt to play “catch up” rather well. As you can see on the SMH ETF sector daily chart below, the semis are working on a tight bull flag, without much heavy selling coming back into the market. Technically and psychologically, this tends to bode well for bulls going forward as the selling pressure figures to have abated in recent months. Of course, let’s not put the horse before the cart just yet, as an actual secondary breakout that holds is the true signal to get more involved for me.
Nevertheless, the bulls are looking to escape the sharks attempting to break the semis back down below its breakout point. If the past few days of action are any indication, the bulls may very well escape shark week intact.
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Hi Chess I noticed INTC late July death cross signal failed yesterday that caught my attention. Now the 200DMA looking like it may get defended. Nice SMH chart analysis.
Exactly, Pete. Always alert for those false bear market signals when still in an overall cyclical bull.
Death cross signals in a bear market much easier to trade. That’s what most investors don’t understand.
Good quote to remember from Jesse Livermore “I never hesitate to tell a man that I am bullish or bearish. But I do not tell people to buy or sell any particular stock. In a bear market all stocks go down and in a bull market they go up.”
Well said
… and yet, Jesse later blew his brains out !
A cautionary tale, indeed !
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