This market feels horrible. For there are tremendous opportunities out there, but they are only visible to those that can stay unbiased and get rid of the doomsday narratives that are currently going viral, as explained in our piece, "7 Secrets of Successful Investing."

Many of those opportunities are discussed in our 2023 forecasts, and none of our forecasts got invalidated by the ongoing price action so far. Here is another opportunity: semiconductor stocks.

We are looking at structures on charts to assess risk vs. opportunities. If we apply such a structure to semiconductor stocks, we have a very clear take-away: opportunity.

Below is the SOXX ETF, presented on a long-term chart with weekly candles. One thing that stands out is the long-term channel. Whatever happened in September and October of 2022 may have felt disturbing, scary, and uncertain, but remember that those are simply feelings. In the bigger scheme of things, as seen on chart below, it was a rather violent test of key support on the long-term trend channel.

While October might not have been an easy-to-justify ‘buy the dip' opportunity, there certainly was a justified 'buy the dip' opportunity in December. That’s when it became clear that semiconductors ‘broke out’ of their downtrend line, as shown by the red falling line on the chart below. There was a perfect back-test of both the channel support and the red falling trendline.

In terms of patterns, the ongoing chart setup has started looking a lot like an inverted head-and-shoulder pattern, right at support of the long-term rising channel. This is an opportunity. Do you see it?

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