SMH is stronger than INTC and TSM. That is surprising. But when you drill down further, you can notice a lot of solar companies listed here. The Solar companies are part of TAN, Components of TAN are in XLE, Impact in Oil price affects XLE, so does, TAN. Similarly the strength. The recent strength in XLE with the OIL trading at around 50ish. Shower some hope for the energy sector. At the same time, a word of caution from DXY "Don't get excited just yet".
Let me get back to SMH. Like i mentioned XLK and XLE heading down will be a disaster. Both here and QQQ.
Two things that concern me,
1. The Divergence
2. SPY Shaking itself,
From a short term trade perspective - I would be in the long side.
Upon confirmation of those major divergences here, there is no reason not to expect this fall apart. At least to retest its upper 40. This could never happen.
Something I will not forget.
Market is an equal opportunity dream killer. Big profits come from low probability, small profits from high probablity
Let me get back to SMH. Like i mentioned XLK and XLE heading down will be a disaster. Both here and QQQ.
Two things that concern me,
1. The Divergence
2. SPY Shaking itself,
From a short term trade perspective - I would be in the long side.
Upon confirmation of those major divergences here, there is no reason not to expect this fall apart. At least to retest its upper 40. This could never happen.
Something I will not forget.
Market is an equal opportunity dream killer. Big profits come from low probability, small profits from high probablity
Uday C Santhakumar