We all know how well semiconductors have done over the past year or so.
Just look at the semiconductor ETF (SMH) from October 2023 through July 2024:
We also know how badly they’ve been hammered recently (just look at the right side of that chart).
And TSM (Taiwan Semiconductor) looks almost the same.
Here’s the chart:
It also had a massive rise before falling.
But the sideways movement could mean it’s gathering up momentum for another big explosion.
And the market’s bullish reaction to the Fed’s 50-point cut yesterday could add fuel to that explosion.
A break above $175.45 could lead to a big move:
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
