I shared my thoughts on the semis in this comment reply earlier today:

https://rightsideofthechart.com/hrl-hormel-foods-final-price-target-hit-27-profit/#comment-39350

Let’s see how they trade tomorrow & how the weekly candle on SOXX & some of the big semis finalize at 4 pm. A big down day in SOXX tomorrow would solidify a bearish engulfing candle & solid weekly close below the key uptrend line off the March 30th lows in SOXX & give me some confidence to go home with a decent short position over the weekend.

YW, but no high-fives until at least my first price target is hit. /CL broke out above that bullish falling wedge today, after holding & reversing off that support yesterday. So far, so good, but if I had a nickel for every trade that started to play out but then crapped out before hitting my price target(s), well…

Best of luck to you (and me) on the trade. Holding for now, but nothing too heavy as volatility & uncertainty is just too high right now to bet crude hard either way.

Fair question & yes, most semis tend to move roughly in sync but not as much as related stocks in sectors such as the gold miners. When the price of gold rised 50%, nearly all the established miners will rise roughly together with a pretty tight correlation as their business model is very simple: Mine gold & sell it. As gold goes up & down in price, their profits rise & fall along with it.

There’s a lot more variation between the “fortunes” and unique circumstances, product niches & variations, production constraints, etc., of each of the semi-related stocks. MU’s big earnings report, while I would certainly expect some related buying in the sector, doesn’t mean the other semis get a “cut” of those profits and future orders. Yet, I saw numerous semi & related stocks up double-digits in pre-market today, most of, & in many cases, all of & then some, of those “MU-induced huge gains were faded by the close today.

That’s indicative of less sophisticated, retail investors indiscriminately buying other semi & AI-related stocks in the relatively illiquid after-hours & pre-market session, with the pros (institutions) stepping in to sell those names that caught an unwarranted big pop on the heels of MU last night.

JMHO, of course, but that’s how I see it.