Well, the weaknesses and breaks we saw in semiconductors yesterday have been neutralized, at least for now, by blowout earnings from one overseas company: Taiwan Semiconductor. TSM has roared to lifetime highs yet again:
Which is par for the course, considering its storied history of price gains:
In turn, this is blasting the semiconductor ETF symbol SMH to lifetime highs as well.
And, thus, the /NQ is up well more than a full percent pre-open, undoing all its damage from yesterday.
Added to which, any fear has vanished, as illustrated by the crumbling VIX:
Maddening, isn’t it? The only, and I mean the only, possibly good news I can offer any bears out there is that what this has achieved is to push the /NQ back to the exact same line where it had been failing. Only this time, this line should behave as strong resistance.
The other indexes aren’t rallying with the same zeal. The /YM, for instance, has been sputtering for days now, and as I’m typing this, it is up only a few hundreds of a percent.
The other notable news is metals which, for a change, are actually in the red before the bell. Silver, for example, has snapped its uptrend and affirmed this role change of the line by rallying briefly and then slumping anew. Palladium and silver are both down about 2.5% before the bell.
I’ve got a few ugly stop-outs waiting for me, so I’d better get to it! Good luck.
