18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,599 Blog Posts

Semis Under Pressure Again

The market is acting weird again, with gains in industrials and big weakness in semis. We are lower by another 1.5% in the $SMH today, making it down 4% in two days. We are not, however, oversold and nowhere close to it, according to Stocklabs.

The overall tone of the market is good, unless you’re in semis. The rotation out from semis into other areas is definitely happening. But what people want to know is, is this sell off in the semis a foreshadowing of a larger overall pullback in markets or simply a buying opportunity? It’s really hard to say, since I am bullish, but do believe the semis got way ahead of themselves.

Luckily for me, I was SHORT semis into today and have gains of 40bps for the session. I am moving incrementally now, which is the way I prefer. I do not view this market as wildly opportunistic, but instead hard and a grind. Truthfully, most markets during my entire trading career were ‘hard’ with few exceptions: 2003, 2006, 2009, and 2021 were all very easy. I left out some big years from me, because I know 2020 ruined a lot of people as did 2022. I did very well in 2008, but it was not easy.

An easy tape is a market that you simply know with every fiber of your being is going higher. It’s not a question of if it’s going higher, but by how much.

This tape, unlike 2021, is very narrow, spiteful, vindictive and disgusting. It reminds me of some people that I cannot stand being around.

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