I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,720 Blog Posts

“Overplay for the underlay” on semiconductors

Yesterday we looked at the pivot level the NASDAQ transportation index is trading at.  Transportation bears are being pressured today after buyers received newfound conviction from the $CSX earnings.  Now let’s turn our attention to the real driver of stock market gains—the PHLX semiconductor index.  It has the classic overplay for the underlay* set-up.


After successfully setting up the overplay for the underlay, semiconductors are catching a bid off the old triangle consolidation.  Pretty straightforward stuff here folks—if buyers defend here we are likely to see a sharp move higher.   If not, probably more chop.   My gambles and bias say we go higher.  Yours should conform to your own damn research and bias. Trade accordingly.

kiss kiss


*Writer’s note – you will not find the ‘overplay for the underlay’ trade setup in any published books on technical analysis.  It is a term taken from the streets of Detroit, for when a dude pretends he’s not interested in something, like a real thick girl, until everyone’s attention has moved away, then he sweeps in and presents himself as a beta cuddle/sex slave.

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