Semiconductors Hang On By A String
This morning, the semiconductor stocks are weak once again. The popular and highly followed Semiconductor Holders Trust(NYSE:SMH) is trading lower by 0.37 cents to $32.11 a share. Many traders and investors are watching the $32.00 level very closely as this level has held as support for the past five months. Should the SMH close below the $32.00 level on the daily chart it could be a very negative sign that the semiconductor index is going to trade sharply lower.
Many leading semiconductor stocks are trading lower this morning. Semiconductor equipment manufactures such as Novellus Systems Inc.(NASDAQ:NVLS), KLA-Tencor Corp.(NASDAQ:KLAC), Lam Research Corp.(NASDAQ:LRCX), and Applied Materials Inc.(NASDAQ:AMAT) are all trading lower at the start of the day. These stocks have lead the declines in the sector lately and should be followed closely. It is very important to see these stocks trade off the morning lows or the semiconductor sector could break lower. Right now the entire chip sector is hanging on by a string.