Home » Chip Stocks Are Overheating, Are They Heading For A Meltdown?

Chip Stocks Are Overheating, Are They Heading For A Meltdown?

Chip Stocks Are Overheating, Are They Heading For A Meltdown?

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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Michael Kramer and Clients of Mott Capital own SWKS, NFLX

S&P 500 (SPY)

Stocks paused today with the S&P 500 falling 20 basis point to 2,731. It would seem the index is getting ready to break out tomorrow and push on towards 2,800 over the coming days.

s&p 500, spx

Russell 2000

The Russell has a similar setup and appears it is gearing up for a rise too.

russell 2000

Semis (SMH)

Semis where hot again today, and to some degree, I’m beginning to think that the group needs to cool off some or at the very least consolidate. I talked about this morning in the premium area today. Semis May Need To Cool Off

semis

Skyworks (SWKS)

Skyworks was the big winner today rising to resistance around $88. The RSI is overbought, and so a pullback to $81 would be welcomed and would allow the stock the ability to continue to climb without overheating.

swks, skyworks

Micron (MU)

Micron is now at an inflection point because the stock is at the upper level of resistance at $42. The trend in the RSI is also higher, but again we need to some consolidation in this region between $40 and $42, that would be ideal.

micron, mu

SNAP

Snap surged today after posting better than expected results. I can’t remember the last time that happened. Anyway, the stock traded up to around $8.90 and stopped,  not the direction I was expecting. My feeling is that stock refills that gap back to $7.30, but I was wrong once.

snap

Chipotle (CMG)

Chipotle is trading higher after it posted bettered results after a bunch of adjustments. Another one I got wrong. I had looked for a decline, clearly not what is happening.

chiptole

Netflix (NFLX)

Netflix had an ok day, down slightly, but more important is that it is managing to hold on its recent gains. The trend is still higher at this point, but resistance at $360 is proving to be difficult.

netflix, nflx

Amazon (AMZN)

Amazon continues to struggle and is hanging on at support around $1,620. The trend in both the stock and RSI is lower, and I still think the stock heads lower.

amazon, amzn

That is it for today.

Mike

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