The picture is going from bearish to bearisher and I am learning ever more clearly to tune out people with nothing more than charts backing their viewpoints. Ref. Team ‘Semi Bullish’, which I and I am sure you saw flaunting the bullish nature of the SOX in December despite what we – exclusively, I might add – uncovered as a developing bearish fundamental scenario. While I think there may be 2 or 3 analysts on Wall Street who know what the Book-to-Bill ratio is, I’ll guarantee there were none getting the boots on the ground information I got from my former associate. It’s all right here in this post.

I think you can tell that I find it annoying when markets start moving and hysterics start getting whipped up. The time to be getting bearish is not now; it was a progressive thing over the last year. Surely the same technical entities whose charts told them to bull the SOX in December will take us to school about these bearish developments going forward.

Anyway, I updated the chart of Semi equipment guy LRCX, which is a stock I am and have been short.Until today it was a somewhat frustrating short.Here are more views of the precarious sector.The chart boyz are now all over this little H&S I am sure.

The weekly is no better.In fact, it would be much worse if 605 area support fails.That is because there is a big daddy H&S forming and a loss of near support would bring on a test of the neckline, which is also support going back a decade or more.For now we can manage 550.

Finally, old friend AMAT, a companion short position to LRCX (and MKSI).