Chip Off The Old Block
This afternoon, the major stock indexes are coming under selling pressure once again. Most leading commodity, energy, and financial stocks are trading lower across the board. The one area of strength in this market is coming from the semiconductor stocks. These stocks are not trading higher by all that much, however, they are continuing to hold up well in a very tough stock market environment.
The Semiconductor Holders Trust (NYSE:SMH) is trading higher by 0.18 cents to $28.70 a share. The SMH has actually remained above its recent pivot low made on September 9, 2011 at $27.28 a share. The SMH will have intra-day support around the $28.50 area should it pullback. The intra-day upside potential will be around the $29.00 area. Please only expect the upside if the major stock indexes start to bounce off the afternoon lows.
Other leading semiconductor stocks that are trading higher this afternoon include Sandisk Corp.(NASDAQ:SNDK), Intel Corp.(NASDAQ:INTC), and Marvell Technology Group Inc.(NASDAQ:MRVL). Often when the semiconductor stocks can rally or bounce despite a weak overall stock market it could be a signal that a tech bounce could be very close. Traders must continue to be very careful in this type of environment.