Trading Strategy – iShares PHLX Semiconductor ETF

One of the more noteworthy developments in recent days has been the move in chip maker stocks.  The semiconductor sector bucked the overall trend after Nvidia (NVDA) posted earnings per share and revenue that easily beat analyst expectations. The company’s stock rose 5.3 percent and was the best performer in the S&P.  Semiconductor has been on fire this year that saw the iShares PHLX Semiconductor ETF (SOXX) is up more than 40 percent in 2017, outperformed the S&P by a wide margin. Now the question is whether the rally has more legs?  Below is an update look at a trade in SOXX.

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 – iShares PHLX Semiconductor ETF (daily)

Our “U.S. Market Trading Map” painted SOXX bars in red (sell).  After a strong run of outperformance since August, SOXX peaked last week at 179.05.  We wouldn’t read too much into Friday’s rally, which is merely an orderly low-level consolidation period in the aftermath of Thursday’s massive selloff.  For the near term, the ETF has carved out key short-term resistance and support levels for traders to monitor…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.


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