Semiconductor Stocks Ring in the New Year

Micron Headquarters

Semiconductor Stocks Surprise Investors

The cycle in semiconductor stocks that started before the holidays continues its bullish trend. It is now entering the extreme zone, so we’ll be selling some of our winners into strength.

SMH-01-04-2018

NVDA is our strongest position, leading into the CES show on January 9. We anticipate NVidia might have some new products to show off, as well as many of the AI component companies in BOTZ. We have a position in the latter as well, with NVDA comprising a large weighting in the ETF. There are a number of Japanese companies in the BOTZ ETF showing promise as well. Make a note of it.

Semiconductors – Micron New Position

Micron is a new position 44.50 (+/-). We started this position, with the idea that we should scale in as we trade through the middle of the current pattern. Price action firmed above the daily 9/20ema. After hours price action has propelled the stock higher. As luck would have it, it was featured on Mad Money last night, according to others.

The close above VBP resistance levels leaves us with an opportunity to add to our starter position. A measured move is about +10 on the high side and +6 on the low side. Taking this measured move at the recent pivot high at 46.80 would give us 52.80. 10 points would give us 56.80. All of these targets become a possibility if we break above 46.80 in the short-term.

MU-01-04-2018

Volume is above average, with RSI suggesting higher prices. 46.80 is the next bag-holder level and the target over the next few trading days.

We might take some profits from NVDA and put them into this name, as price remains bullish in the pre-market session.

We will keep a partial position open in these semiconductor stocks, as they enter into overbought territory. Keep an eye on RSI, as anything above 70 needs to be monitored.

We’ll be LIVE at 9:20 AM.

Happy Trading,

Vinny

Fingers crossed that this snow storm passes us without incident.



Why Cycles are Critical to Stock Trading Success

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Vinny Gambini

Trade Fundamentals w/ Technical Analysis - CANSLIM method using high probability setups and Ichimoku Trend Analysis. Architect, Family Man and Father of three.