Semiconductors Rally

Posted by downtowntrader | 10/09/2006 09:08:00 PM | 3 comments »

We had a nice move on semiconductors today and it looks like they may follow through over the next few days. This morning, as the indices were weak, the $sox was green giving clues that the indices would turn it around. I didn't like the way the Nasdaq closed, but small caps were looking better today and may be strong tomorrow. Here are a few charts to add to the watchlist.

Illumina, Inc. (Public, NASDAQ:ILMN)
ILMN has been kissing the rising trendline for a few session now. The rule of polarity states that previous support once broken turns to resistance. This is a perfect example of that.



Broadcom Corporation (Public, NASDAQ:BRCM)
BRCM may come back to the bottom of the triangle, but if semiconductors follow through then BRCM should join in the fun. Stochastics is about to crossover.


UTi Worldwide Inc. (Public, NASDAQ:UTIW)
I haven't been too keen on the transports as a whole, but UTIW looks decent after clearing this pennant. It is retesting support and may break the 200sma on the next move.


Thats it for tonight. Go Broncos!!

DT

3 comments

  1. Muaad // 4:31 AM  

    DT,

    Thanks for your insights. One quick question: How do you track the different sectors? Do you track them by the various ETFs? or Sector Indices (e.g. $SOX, $GOLD, $SILVER, etc.)?

    I am looking for a strong list of Sector ETFs/Indices that I can track very closely to determine the strength of trend of different sectors. I have noticed that you track the sectors very closely yourself. Perhaps you can point me in the right direction.

    Thanks,
    Muaad

  2. downtowntrader // 8:59 AM  

    Muaad,
    Thanks for the comments. I track both ETF's and the underlying indices. I prefer the ETF's for certain sectors, but the index is the only way to go for others. This is part of my homework process that I have been trying to improve on recently. Right now, I have most of the indices and ETF's in one folder on stockcharts.com and I review them over the weekend to try and determine what sector will be strong or weak in the o coming week. Another resource I use is John Murphy sector selector on stockcharts.com. I am thinking about starting to use TC2000 for this type of work, as it is a pain to go through all the charts on a website. Also, I tend to look at the sectors in larger timeframe charts such as a 3 year weekly and 1.5 year daily chart. Not sure if this helps much, but yes, I think sector review is very important.

    DT

  3. Muaad // 6:37 PM  

    DT,

    Thanks for your help. I am a StockCharts.com member myself and use the various services available, but I am having just a little trouble finding a more inclusive list of Sector Indices and ETFs.

    I have reviewed the list on StockChart.com's "Market Summary," and I find it a great place to start, but I am aware that there are many Indices and ETFs missing from this list. Can you point me to a definite source that has the most inclusive list of Sector Indices and ETFs? And perhaps the list you track and feel is of importance?

    Thanks again,
    Muaad