Oh, well. I’d say the dream is dead when it comes to the semiconductor index. I soured on this one last week, and one simple chart of the SMH shows why:
A couple of weeks ago, the rounded top of this was picture-perfect. However, if patterns violate themselves, it’s time to reconsider. That’s what happened with SMH. It slipped out of the pink zone and essentially violated the cleanness of the top. I finally threw my hands up last Friday and got out.
One core problem is freakin’ Nvidia, which simply refuses to break. NVDA is very robust, and until it starts to break down, the SMH is just going to keep marching on. Feh!
