The semiconductor industry has been a real market leader in 2016, at least when it comes to the broad markets and technology in particular.
The key challenge for every investor is to look for outperforming market segments, and identify its segment leaders. Investors should have their shortlist of segment leaders ready in the semiconductor industry. Why? As soon as the stock market will retrace, which it likely will do in the seasonally weak September – October period, it is time to pick up the segment leaders in the outperforming industries.
When it comes to the semiconductors, its sector index SOX will likely retrace to the 670 to 700 area. If it remains above 750, it would indicate exceptional strength.
Investors should be patiently waiting for an enticing entry point in the coming weeks.
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