Semiconductor Equipment Meltdown

All of the semiconductor equipment makers are under sharp selling pressure this morning. Novellus Systems Inc. (NASDAQ:NVLS) reported earnings last night and the stock is not being well received by the markets. The company reported better than expected earnings but the outlook was very weak. The stock is trading lower by $2.71 to $33.06 a share. NVLS stock has a lot of daily chart support around the $32.50 area. This weak outlook is putting pressure on the rest of the leading stocks in the semiconductor equipment sector. KLA-Tencor Corp. (NASDAQ:KLAC), Applied Material Inc. (NASDAQ:AMAT), and Lam Research Corp. (NASDAQ:LRCX) are all declining sharply lower at the open.

Many of the leading semiconductor developers and manufacturers are also declining on the news. The Semiconductor Holders Trust (NYSE:SMH) is trading lower by $1.24 to $32.92 a share. The largest position or holding in the SMH is Intel Corp. (NASDAQ:INTC). Traders must watch these stocks closely as this sector should be in play throughout the trading session.

About Nicholas Santiago 576 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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