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One of the noteworthy developments in recent days has been the move in semis.  The group was under selling pressure Thursday after Taiwan Semiconductor Manufacturing (TSMC) said it expects second-quarter revenue to range between $7.8 billion and $7.9 billion, well below a Wall Street consensus estimate of $8.8 billion.  Shares of Apple fell 2.8 percent, while Nvidia, Micron and Advanced Micro Devices all declined at least 2.4 percent. The VanEck Vectors Semiconductor ETF (SMH) dropped 4.5 percent in its worst day since December 2016.  Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of something worse?  Below is an update look at a trade in SMH.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red.

Chart 1.1 – VanEck Vectors Semiconductor ETF (weekly)

Our “U.S. Market Trading Map” painted SMH bars in red (sell) – see area ‘A’ in the chart. The first dominant feature on the chart is the rising trend started in late 2015.  The second dominant feature of the chart is the downward trend since early March 2018 which represented the digestion period.  The correction pushed SMH below the 20-week moving average, the level that offered support since early 2016.  This is a bearish development, suggesting…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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