Shares of $AMKR are down 20% today post earnings and that’s probably the reason why the $SMH is off by 3%. If you didn’t know, and you probably didn’t because you’re stupid and lazy, Amkor designs, tests, and packages wafers. If you think about the semiconductor industry you have to think about the entire supply chain. The silicon is mined and sent to a foundry to create wafers. The wafers are then inspected and tested for quality, packaged and sent to another foundry where chips are created. Those chips are sent to places like $NVDA and $INTC and they’re sold to various other companies. So a company like $AMKR, although small, is often viewed as a forward looking indicator in the semis and there are several companies that posses this distinction, one of which used to be $KLIC because they make the gold bonding on many of these chips and when they warn this means the entire sector is about to suck.
See if you actually read stuff and didn’t just look at charts like fucking morons you’d know things, possess a modicum of intelligence.
Another semi miss last night was $LSCC, also down nearly 10%. This is less important but the overall fear now is “have the semis topped?”
We will find out soon with earnings coming out of $AMD tonight and $LRCX, $QCOM and $ARM tomorrow morning.
The $SMH is now down 11% for July, down 20% since the highs. There isn’t anything remotely interesting about this technical set up and has the flavor of doom written across it.
A catalyst, such as BETTER THAN EXPECTED results, could be the impetus to reserve this trend. But it’s always riskiest and scariest to sojourn into fear during these vantage points and you need to possess complete conviction in the idea that in spite of the valuations and the trends these stocks will inexorably trade up based upon whatever theory you have. I do not have such convictions and would prefer to play the outskirts of this battle, instead of being in it and getting my hands dirty.
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