It’s looking like yesterday’s SOX breakout was another head-fake. As I type this the SOX has pulled back to its 200-day moving average. Word is that the semiconductor bears are out in full force today. Here’s a note from Briefing.com:
Feedback on SOX -1.7%
Hearing commentary suggesting that with all the bullishness coming out of the sell-side of late on Semi/Semi Equipment stocks, a contrarian signal has been triggered, leading fast money to begin lightening up in the space. “Analysts too giddy… when Wall St. agrees on one thing–do the other.”
Ah, that explains the crick in my neck this morning. Darn whiplash…
I trade the DAX future (FDAX) daily and today two false outbreaks were seen so false outbreaks being nothing new under the sun. It gave some good opportunities too.
Carlo
http://www.daxtrades.com