Semiconductor Whiplash

Summary The industry recently broke out of its multi-month consolidation. In fact, as of Tuesday, the iShares Semiconductor ETF closed at the highest level since the first half of June. While it had reverted lower yesterday, that marked the first time it closed at least two standard deviations above its 50-DMA since May 13th. SOXX finished over a full standard deviation below its 50-DMA as recently as last Wednesday, meaning it only took four sessions to go from oversold to extremely overbought. Alexander Sikov/iStock via Getty Images Major indices have pressed higher over the past week, but on lackluster breadth. In other words, heavyweight parts of the market have driven the gains, and a prime example are semiconductors. The industry recently broke out of its multi-month This article was written by Bespoke Investment Group 48.91K Followers Follow Bespoke Investment Group provides some of the most original content and intuitive thinking on the Street. Founded by Paul Hickey and Justin Walters, formerly of Birinyi Associates and creators of the acclaimed TickerSense blog, Bespoke offers multiple products that allow anyone, from institutions to the most modest investor, to gain the data and knowledge necessary to make intelligent and profitable investment decisions. Along with running their Think B.I.G. finance blog, Bespoke provides timely investment ideas through its Bespoke Premium (https://bespokepremium.com/) subscription service and also manages money (https://bespokepremium.com/mm) for high net worth individuals. Visit: Bespoke Investment Group (https://bespokeinvest.com/)