October 18, 2017
Mish's Daily
By Mish Schneider
To watch my Facebook Live Video on Sister Semiconductors, please click the link below.
https://www.facebook.com/mishsmarketminute/videos/1910114959309081/
Semiconductors are crystals made mostly of silicon. Hence, Silicon Valley’s name. Furthermore, where our Sister SMH lives.
Semiconductor chips act as the “brain” on so many devices we can no longer live without.
I recorded my video on my smartphone. I am writing my blog on my computer…
SMH is made up of 25 technology stocks, 74% of which manufacture in the U.S.
No wonder she is in the Modern Family!
Year to date, SMH is up over 36%. For the past 5 years, SMH is up a whopping 234%.
The weekly chart (each bar represents one full week) has 2 moving averages illustrated.
The solid line is the 200-week moving average. The dotted line is the 50-WMA.
The horizontal black line represents a short-term and vital support area. 90.00 for now, is a good price to hold.
I imagine 100 will be more psychological resistance.
Clearly, technology and chips are here to stay. Question is, how long can the price rise until the ETF becomes way too saturated?
Secondly, how will SMH help the rest of the Modern Family and the US economy? Stay tuned.
On another note and as a reminder, yesterday I wrote that, “I’m watching for Silver-SLV to clear the weekly MAs first and foremost. Although I will not hesitate to buy a starter position, aggressive buying is best saved for a clearance of 17.58, the 2017 high.”
S&P 500 (SPY) New highs again-keep it going-need one blow-off rally more
Russell 2000 (IWM) 149 cleared and now over 150 we will see what Gramps is made of.
Dow (DIA) Wash, rinse, repeat-New highs AGAIN
Nasdaq (QQQ) New highs but not a new high close for what it’s worth
KRE (Regional Banks) Inside day under the 56.50 resistance that must clear
SMH (Semiconductors) Rest over-back to new highs
IYT (Transportation) Good recovery after looking vulnerable
IBB (Biotechnology) 339 pivotal resistance and 335.50 near term support-Nowhere new highs like a lot of others so anything can happen
XRT (Retail) 40.00 pivotal today held for unconfirmed recovery phase
XLU (Utilities) Now an unconfirmed warning phase
GLD (Gold Trust) Not much to trade so aside
SLV (Silver) Waiting to see if 16 holds and 16.50 clears
GDX (Gold Miners) 23.67 the overhead 50-DMA. 23.00 support
XME (S&P Metals and Mining) A close over 33.20 better
USO (US Oil Fund) 10.65 some daily chart resistance
XLE (Sel Energy Spdr Fd) On this weekly chart, 69.08 must clear
TAN (Solar Energy) 22.00 now the pivotal number to hold
TLT (iShares 20+ Year Treasuries) 123-126.09 range
UUP (Dollar Bull) 24.30 pivotal and 24.00 pivotal support
FXI (China) 46 first support area to hold
Every day you'll be prepared to trade with:
