A Second Look at Semis

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One of the strongest and most resilient sectors has been semiconductors, as illustrated by the $SOX index:

slopechart SOX

However, there are some very specific stocks that I believe are appealing short-sale candidates within this sector. The bonus is that, in the unlikely event that the SOX dares to weaken, these weakest of stocks should lead the way down. One of them is the not-very-cleverly-named Microchip, which support and resistance I’ve highlighted with horizontal lines:


The other is MIcron:


And, for the boldest and daring among you, perhaps you’d want to consider AMD, not so much because of its classic topping pattern, but merely because It’s Too Damn High.