Semiconductor Stocks 03132024

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Good morning, everyone, and welcome to Wednesday morning.

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It's Stephen Whiteside here from theuptrend.

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com. In this morning's presentation, we're

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going to take a look at semiconductor stocks.

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The reason I want to look at it today is

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just at the start of the year, we posted monthly price target charts, and of

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course, we always talk about two lines up and two lines down.

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That's your playing field.

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We've made it up to the 5,000 level, and we traded above that over the last couple

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of days and closed just below it yesterday.

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We've made our way up to a major target,

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and we're up over 19% a year to date for the SOX index.

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Now, when we look at the Daily Panic Zone chart for the SOX index, you can see we've

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had a bunch of early warning signals that ended up giving us a pullback.

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No major pullbacks, no major breakdowns.

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In fact, if you draw a line from the October low, we've got a nice uptrend, and

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so far, the market is willing to buy the dips.

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Now, We could get a pullback here to the

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uptrend line, and we'll have to see if the market wants to continue to buy the dips.

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If they don't, our Panic Zone chart is

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actually projecting back towards where we started the year.

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That could It's not going to happen at some point.

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It's not going to happen on Wednesday morning, that's for sure, but we do have a

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couple of early warning signals up there at the top of the screen.

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So far, it hasn't done too much damage to the SOX index or the chip sector.

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Now, not all chip stocks are winning in 2024.

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When we look at Wolfspeed, we're down over 32% year to date.

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Axcelis is down over 12%.

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We've got GlobalFoundries down nearly 10% for the year.

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We've got Intel down a little over 8% so far, year to date.

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It'll be very interesting.

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If the DOW ever decided to swap Intel out

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and put NVIDIA in, that would certainly be a major change for the market.

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Now, Of course, if you're not a stock picker, you may want to watch the ETFs,

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and they're certainly some of the most actively traded ETFs on the planet.

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The SMH gives you the SOX index without any extra volatility.

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And of course, what I like is the SOXL, which is the 3X Bull ETF.

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It is currently on a buy signal, of

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course, and we're looking for close on Wednesday below 45.

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64 to give us a new daily sell signal.

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Now, what's working?

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Of course, everybody knows NVIDIA is still the big winner.

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It was the big winner last year.

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It's the big winner this year, and we're up over 86% year to date.

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On Wednesday, we're coming into Wednesday's trading action.

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We are still trading above the upper channel line.

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Things would change on Wednesday.

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If NVIDIA were to close below $830.

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63, of course, our next major target to

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the upside is $1,000, and the market may want to move

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all the way up there to tag that level before pulling back.

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Now, Coherent is the next best-performing chip stock year to date, up over 45%.

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It's traded in the channel for the past couple of days, so a close on Wednesday

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below 6,164 would give us a short term sell signal.

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Taiwan Semiconductors is up over 41 %.

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Then looking at Advanced Micro Devices, up over 40 %.

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We've been in the channel for the past couple of days, so a close below 195.

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09 on Wednesday would give us a sell signal.

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And then last up, we're looking at ASML.

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It's already on a sell signal as of Monday's close.

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We traded higher yesterday, so a close on Wednesday above $995.

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38 would give us a new short term buy signal.

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We're up nearly 35% year to date.

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Of course, the charts we're looking at in

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this presentation I have mostly been daily rightside charts.

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Of course, if you're a longer term

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investor, you want to ignore those charts and focus on the weekly charts.

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You can see ASML is nowhere near a weekly sell signal.

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This coming Friday, if AMS sell were to close below $827.

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85, that would give us a new weekly sell signal.

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And of course, if that doesn't happen, and we're not expecting it to happen this

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week, that lower channel line is going to continue to move higher weekly.

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Okay, folks, that's all I wanted to cover in this presentation.

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Again, the reason for the presentation is

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the SOX index hit a major milestone of 5,000.

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We have been able to trade above it for a couple of days.

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We'll have to see if it

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turns out to be long term resistance for this sector of the market.

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Otherwise, the market may want to wait

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until NVIDIA moves all the way up to $1,000 before taking a major break.

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Enjoy the rest of your day, folks.

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Next time you'll hear my voice is on Thursday morning, and at that time, we're

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going to take a closer look at Canadian Energy Stocks.

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