A Second Look At Semis

One of the strongest and most resilient sectors has been semiconductors, as illustrated by the SOX index:

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However, there are some very specific stocks that I believe are appealing short-sale candidates within this sector. The bonus is that, in the unlikely event that the SOX dares to weaken, these weakest of stocks should lead the way down. One of them is the not-very-cleverly-named Microchip (MCHP), which support and resistance I’ve highlighted with horizontal lines:

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The other is MIcron (MU):

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And, for the boldest and daring among you, perhaps you’d want to consider AMD, not so much because of its classic topping pattern, but merely because It’s Too Damn High.

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Disclaimer: This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult ...

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