We highlighted AMAT in an NFTRH+ update on October 22. I bought it as a laggard ‘catch up’ play after taking profits on the SMH Semiconductor ETF. I then took profits too soon on AMAT, but that’s me all too often.
Here is one of 2 charts used (a daily and a weekly) in the original update. I have turned the RSI green and added a resistance zone to the chart. The original target was 18 and the trade should be ending for those who took it as a trade.
It was hard to buy the Semis (SMH) at the September low but somebody had to do it. Now the technical traders are getting on the Semi sector. Good for them, they are momentum chasing technical fly boyz.
People think I am a chart guy but a chart is only part of the story and IMO those who think of charting as a stand-alone discipline in trading or investing are another flavor of the various cults and casino patrons that populate the financial markets.
Sure, the daily SOX has an intriguing little bullish looking pattern but the weekly is not so bullish. We covered this and a brief fundamental take (book-to-bill ratio) in a public post at nftrh.com yesterday and in a more detailed NFTRH update the day before. I have also ‘channel-checked’ with a former colleague and I’ll be sharing his ‘boots on the ground’ information in NFTRH 371 this weekend.
The Semi equipment sector (AMAT, LRCX, KLAC, etc.) was the bullish economic canary in January 2013 and it could be setting up that way again, this time going the other way. Funny how the fundamentals are turning even as many of these stocks rip higher. Good old Wall Street (cue our Feb. 2014 criticism of the 3D Printing promotion):
This is another somewhat sermonizing post from your friends at biiwii.com simply asking you to realize that the market is an ecosystem of technical and fundamental analysis. Just ask shell shocked gold traders all these years later. Fundamentals matter, and we had a big positive one out of the forward-looking Semi’s in January 2013. Now we have a whole other kettle of chips.
Hey, have a great Thanksgiving if you are celebrating!