All Eyes on Us:
The semiconductors will be in full focus as investors have been anxious about the direction the group will navigate following NVDA’s earnings announcement Wednesday after the CLOSE. The name still trades 9% off its most recent 52-week highs but has sported a robust run off the very round 90 number on 8/5. It has carved out a handle on a double bottom pattern which can also be interpreted as a bull flag. Will a well-received number already been PRICED into perfection? Below is the chart of the SOXX and NVDA is now the second largest holding at just under 10% of the fund and behind AVGO. Its WEEKLY chart has something for both bulls and bears, and bulls would state the completion of the bullish morning star pattern the week ending 8/16 which jumped more than 9%, and the taut trade that has followed the last couple of weeks. Bears would claim that trade has been very volatile and choppy as of late, classic topping behavior following the 70-point decline from the bearish WEEKLY shooting star candle the week ending 7/12 (notice negative divergence too with lower RSI highs in February and July as PRICE made a higher high).