Demand for semiconductors remains buoyant as fourth revolution industries build on the digital revolution, and that is likely to support a bullish trend for semiconductor stocks going forward.

But Semiconductor stocks are also bellwether stocks because they are a leading indicator of the economy. 

Semiconductor Stocks
S&P 500 returns 2019

“Semiconductor stocks are bellwether stocks because they are a leading indicator of the economy”

WEALTH TRAINING COMPANY

The stock price of semiconductor stocks is influenced by the economic cycle of boom and bust

As they say, watch what the big speculators do and not so much what they say.

George Soros, the billionaire speculator has exited financials, according to November’s data from Soros Fund Management, at a time when the mainstream is peddling a V-shaped narrative.

So, the smart money does not buy the V-shaped economic recovery narrative.

But a Democratic blue wave in January 2021 has also removed the threat of political gridlock, which means both houses can live up to their promise of trillions in extra pandemic relief spending. So has the outlook changed since November, bearing in mind there is likely to be no opposition to even more US public spending from one trillion US dollars to one and a half trillion dollars out of the depression?

In a few words, the steeper the shape of the economic recovery the stronger the tailwinds for semiconductor stocks

Despite the Soros fund liquidating positions in several high-profile US cyclical banking stocks the fund also opened a new eye-catching position in semiconductor stocks.

 

V-shaped economic recovery

the smart money does not buy the V-shaped economic recovery narrative

WEALTH TRAINING COMPANY

For example, Microchip Technology Inc, a new buy for the Soros Fund with 267,956 stocks bought. 

So, with the fundamentals smiling on semiconductor stocks let’s zero-in on the most liquid semiconductor NASDAQ stocks to identify the bottom with technical analysis. 

“Applied Materials Inc. (NASDAQ: AMAT) also hit a 52-week high of $100.87. The 52-week low is $36.64. ” – Wealth Training Company

The aim is to identify stock retracement levels, temporary reversals in an upward trend in semiconductor stocks

For example, the semiconductor stock, Advanced Micro Devices Corp. (NASDAQ: AMD) shares recently hit a 52-week high of $100.87. The 52-week low is $36.64. But the short increase to 60.68 million from the previous reading of 55.97 million suggests this stock price could temporarily reverse.

Applied Materials Inc. (NASDAQ: AMAT) also hit a 52-week high of $100.87. The 52-week low is $36.64. 

Short interest in Broadcom Inc. (NASDAQ: AVGO) grew from 3.60 million to 3.77 million shares in those two weeks. Shares recently hit a 52-week high of $454.76. The 52-week low is $155.67. 

Intel Corp. (NASDAQ: INTC) saw its short interest drop to 68.24 million shares. The previous level was 73.45 million. Its shares broke above $59 this week and have in a 52-week range of $43.61 to $69.29. 

Micron Technology Inc. (NASDAQ: MU) shares have traded around $79 in recent days. The 52-week range is $31.13 to $84.16. 

Nvidia Corp.’s (NASDAQ: NVDA) short interest swelled to 6.44 million shares from the 5.63 million in the prior period. Shares were trading near $540, in a 52-week range of $180.68 to $589.07. 

Other semiconductor stocks include Qualcomm Inc. (NASDAQ: QCOM) shares were changing hands near $155, in a 52-week trading range of $58.00 to $161.07.

Texas Instruments Inc. (NASDAQ: TXN) also hit a 52-week high of $173.66. The 52-week low is $93.

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