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Swing Trader
Updated: 27-Dec-21 15:08 ET
Semiconductors Maintain Relative Strength Into Year-End
Buyers have been pouring money back into the market here in the second half of December, pushing the Major Indices back up towards their YTD/Q4 highs. The bullish seasonality has been in full effect for the Christmas holiday and that status quo should be maintained into year-end.
Leading the pack higher today are Semiconductors as the SMH rises up to challenge its Nov-Dec range highs. I had last written about the Technology (XLK) sector emerging in early December with relative strength, highlighting that the Semiconductor industry (SMH) was particularly strong with the group. After further consolidation within their Nov-Dec range, the SMH is now building on last week's pullback to its rising 50-day sma as a number of names capture bids lately. Supply-chain shortages and good earnings results have kept most Semis from under-performing the broader market.
There are more than handful of Semiconductors breaking out of their multi-week range highs today, making them potential opportunities going into the new year. Of course, if any of these names start to reverse or give up recent gains in an aggressive fashion, then that would warrant caution from the Long side.
Any questions, comments, or suggestions, can be emailed to Scott Smith, CMT, at swingtrader@briefing.com. |
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