From Market Guide...
Semiconductor Index (.SOXX) 680.80 +29.92: Returning to our theme of following the money,
Briefing.com notes that the chip sector has handily outperformed the market over the first couple weeks
of the year... To date, the Philadelphia Semiconductor, or SOX, index is up 18%... More importantly,
the price action over the past few weeks suggests that the bellwether index is establishing a solid
long-term foundation... Given how far and how fast the index has run, and that it is bumping up against
stubborn resistance in the 681-700 range, don't be surprised to see some backing and filling over the
next few sessions... However, as long as support near 600 holds during the corrective period,
Briefing.com contends that the chip sector will be well positioned for an intermediate-term assault on the
900 area... Several chip stocks showing similarly strong recovery patterns include Altera (ALTR 32
13/16 +1 7/16), Lattice Semi (LSCC 22 5/8 +1 1/4), Cypress Semi (CY 24 15/16 +1/4), and Silicon
Storage (SSTI 15 3/4 +1 1/2).... Each of these issues has recently 1) taken out trendline resistance and
2) moved to, or through, their 50-day moving averages... Near- to intermediate-term price targets are at
ALTR - 40, LSCC - 27, CY - 30, and SSTI - 20. -- Robert Walberg, Briefing.com
Jerome |
