Semiconductors are probably the most important companies on the planet—they power today’s economy and carry heavy weight in major global indexes.
How they perform often sets the tone for the broader market.
Earlier this year, semis looked like they were about to break down and complete a nasty top relative to the S&P 500.
However, that didn’t last long. They bounced back quickly and reclaimed a key support level.
Bulls are scoring points and hooking higher, invalidating any negative implications from a potential breakdown.
This action can only be seen as a positive signal for the entire market.
After all, the big players are here to play—not to be benched or injured.
This is my chart of the day.
Alfonso
We’ve been positioning for this rotation back into semis through our Breakout Multiplier strategy buying $MU calls. Today, those contracts were up 196% from our entry.
