Semi's Bouncing, However, They Are Signaling Further Declines
This afternoon, many of the semiconductor stocks are trading in positive territory. This is usually considered a positive for the NASDAQ Composite and the major stock indexes. Today, the Semiconductor Holders Trust (NYSE:SMH) is trading higher by 0.07 cents to $26.25 a share. The bounce in the SMH is somewhat feeble when you think about it. There looks to be a much better support level around the $25.00 for the SMH.
Some leading semiconductor stocks that are trading higher today include Lam Research Corp (NASDAQ:LRCX), Skyworks Solutions Inc (NASDAQ:SWKS), and Texas Instruments Inc (NYSE:TXN). All of these leading stocks are showing some strength, however, it really looks to be just a technical bounce from an oversold condition. In other words, the small bounce today does not seem to have much institutional sponsorship behind it.