It is quite obvious central bank money printing and suppressed interest rates caused this bubble. This pattern is playing out two decades later all over again.
Good chance SOX and everything in it. ie NVDA are going down -30-50% minimum a year or so from now.
With heavyweight Intel getting hammered today, the outlook of the broader semiconductor index obviously gets dragged along. The already unconvincing outlook of the past months has taken a turn for the worst by breaking below cloud support at 1299. The minor internal trend line at 1272 is now scrutinized but a move lower seems a mere formality.
Focus is on the...
Semiconductors hit a weekly double top at the same level as the 2000 dotcom crash. I went long SOXS (3x semiconductor bear) and long SDOW (DJI 3x bear) in my 401k right before the market closed yesterday. I got lucky as a bought these right before the Cohn resignation announcement which tanked the futures market. I had also gone short 2 DJI futures. I already...
This is a simple idea. Semiconductors hit $1362 In March of 2000. Now 18 years later they are banging on this ceiling. I think when the break through they will explode to the upside.
higher price attempts with lower technicals = sell set up, if/when this drops below next major fib 61.8 on the RSI
expect lower values in the sector and lower prices in semi's across the board
Possible major top set in the semi's, confirmation may the this week or my fail this week.
This means all in the sector will be a sell or see a correction, NVDA is also the same set up.
Long overdue for a big correction. Almost at levels seen prior to 2008 crash. Tech is getting mature and will eventually get cheaper which will effect profit margins.
