A few days ago, an announcement came out that the U.S government was showering Intel (INTC) with countless tens of billions of dollars of aid, grants, tax breaks, and other goodies. To me, this was disgusting, because INTC has likewise spent countless tens of billions (hundreds, actually) of dollars buying back their own underperforming stock for years, and now they are using corporate welfare to suck money out of taxpayers. Thus, it’s heartening to see that, even with this grift, INTC is getting shellacked this morning.
See, last week I pointed out that, even in the midst of an unprecedented rally in semiconductor stocks, Intel was looking like hot garbage. The chart below is through Friday and doesn’t take into account Monday morning’s pre-market drop, but the stock is threatening that dashed blue support line already.
In a similar fashion, AMD Is getting trounced pre-market.
Likewise, in a similar fashion, I called your attention to the price gap in AMD, which did a picture-perfect seal on Thursday at the peak price of the day. It could well be that, at long last, semis are going to get zapped, but we’ll have to see, because NVDA isn’t even breaking a sweat.
For the moment, tech stocks are indeed slipping, down about half a percent before the opening bell. Take note of that red rectangle.
What that signified is the lifetime high that the /NQ made, ever-so-briefly, last week. The fact it couldn’t hold the new high is intriguing. I’m going to scoot for the moment, so good luck in the trenches!
