Semiconductors Can Tell You A Lot – SMH, INTC, QCOM, BRCM

One of the most important stock sectors that any trader can follow is the semi-conductor sector. This important industry group has a tendency to lead the technology stocks higher and lower. Over the years it has become an excellent barometer for the NASDAQ Composite.

Traders and investors can easily follow the semiconductor index by using a chart of the Market Vectors Semiconductor ETF (NYSEARCA:SMH). If you examine this chart you will notice that the SMH is still trading below its important April and May 2012 highs. When the semiconductor sector lags the NASDAQ Composite it can often be a warning sign that the technology sector could be setting up for a decline soon.

Some other leading semiconductor stocks that should be followed closely include Intel Corp (NASDAQ:INTC), QUALCOMM Inc (NASDAQ:QCOM), and Broadcom Corporation (NASDAQ:BRCM). All of these leading semiconductor stocks are lagging the NASDAQ Composite and the NASDAQ 100 Index at this time. This could be telling that these indexes will be coming under selling pressure very soon.

(click to enlarge)

About Nicholas Santiago 575 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.

Visit: InTheMoneyStocks

Be the first to comment

Leave a Reply

Your email address will not be published.