Well, what are you waiting for? Get in.
Exodus isn’t flagging oversold for many semis yet, but it is flagging oversold for the main ETF, SMH — with flawless, peerless, stats to boot.
Observe. Here is the track record for our algorithms over a 1-10 day trading period. Out of 10 previous instances, we were proven correct all 10 times for an average return of 3.33%.
Here was the last oversold signal, May the 18th.
Out of all the semis subsectors, the equipment space has been hit the hardest, currently in correction territory — down by 10% over the past month. Here are the larger capped stocks in the industry.
NOTEWORTHY: Here is a look at the Exodus oscillator, which essentially takes the mean reversion signal to a visual level, compiling every stock in the industry to give you a look at what oversold looks like. Notice the peaks and valleys? That is not price action, but our mean reversion engines analyzing if the sector is overbought or oversold. I promise you, juxtapose it against price action and you will find a very impressive correlation.
My gut instincts suggest say away from semis. Then again, human emotion is subject to all sorts of errors, rooted in the rigors of our lives. Maybe my morning coffee sucked, soiling my perspective on everything from today’s workout to the dog pissing on my $10,000 rug to the price action in semis.
Nevertheless, the data is impressive.
NOTE: Here’s another ETF that’s oversold — inverse VIX — XIV.
UPDATE: Micron sees Q4 $1.73-1.87 vs $1.60 Capital IQ Consensus Estimate; sees revs $5.7-6.1 bln vs $5.63 bln Capital IQ Consensus Estimate
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oops
oh I thought this was supposed to be the banks are fully funded run
I’ve got cats scratching and ruining a $2,000 rug here. Fly when the kids are gone that dog is going to be your buddy.
Tech nerds are at the 50dma. Let’s see if it get a bounce off it or cave in as the fed reigns in leverage.
The real damage today was euro equities.