“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.”
Friday, September 23, 2016
Semiconductors (SMH) Is Looking A Little Toasty
My Natural Gas UNG trade was pretty good this week but after the FOMC announcement and the successive rises we've had since I feel the market is at a minor inflection point right now. Lots of indexes are at key resistance areas (refer to my earlier post today to see what I mean) and the charts don't feel resoundingly positive as a whole. Case-in-point, Semiconductors Index ETF SMH which bounced two weeks ago off the lower Keltner Channel had a nice run of late with EMA(9) crossing over the EMA(13). Problem is though it now appears a weak looking ascending bearish wedge has appeared and SMH as a whole looks to be putting in a topping pattern. For the last few weeks I've stated that I'm quite content staying on the sidelines until the announcement came from the Fed, but now that it has, I'm perfectly content to continue being mostly in cash.