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Chip Stocks Hold Up Despite The Dark Cloud In Tech

Published 01/30/2013, 12:36 AM
Updated 07/09/2023, 06:31 AM
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Yesterday afternoon, the leading semiconductor stocks were holding up very well despite the sell-off in the cloud computing stocks. The important and highly followed Market Vectors Semiconductor ETF (SMH) traded higher by 0.03 cents to $34.36 a share. So basically, the majority of the semiconductor stocks were flat. Short term traders should watch for intra-day resistance around the $34.40 a share. The daily chart for the SMH will have important resistance around the $35.50 level.

Most experienced traders and investors will follow the semiconductor sector for several reasons. In the past twenty years, when the semiconductor stocks lead the tech heavy NASDAQ Composite it is a sign of further upside for the tech stocks. The opposite is true when the semiconductor stocks begin to lag the NASDAQ Composite it is often a sign that the tech sector is about to roll over or stage a severe correction.

Some leading semiconductor stocks that traders should follow closely on a daily basis include Broadcom Corp (BRCM), SanDisk Corp (SNDK), Intel Corp (INTC), and Texas Instruments Inc (TXN).

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