This one goes right at the heart of the bull rotation thesis going forward. And I will likely follow-up later in the coming week.
First, the semiconductors, with their weekly ETF chart below, are sporting a bullish RSI reading (above 50), but we are looking for the MACD cross to turn back higher into clearly bullish territory to confirm (top and bottom panes, respectively). The semis are a logically potential beneficiary of a bull market capital rotation, as they are not extended and had not been leading for much of the year.
Next, the homebuilders, which had been prior leaders, on their weekly ETF chart second below, are barely hanging onto the RSI 50 and are still sporting a bearish MACD, also top and bottom panes of chart, respectively.
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Chess, the Van Eck site says the SMH inception date was in Dec 2011. Do you know what this chart is displaying before that date? Is this component stock data or another, similar fund?
In any event, I see a massive ascending wedge pattern that spans the entire width of the chart, with a recent failed bullish breakout in May, followed by another bullish breakout. Any thoughts?
Thanks, Bozo. I believe the ETF had a rebalancing in 2011 which accounts for the volume drop-off. I went in-depth on the SMH ETF and some stock ideas in my Strategy Session this weekend.
ahhh good to know cause that looked like some funky chicken
check out ACLS… been stalking this one for years. I think it can double or triple in a hurry. Also SCTY i am riding like a mofo, has big momentum behind it in a hot sector
very nice look