SOXX/XSD Hit Mean Reversion Zone, SMH Still Has Room

jfsrevg
08:02

Semiconductor Historical Extension — Price % vs Volatility (ATR Multiple) from 50-MA

$iShares Semiconductor ETF(SOXX)$ (Broad Semiconductors) & $SPDR S&P Semiconductor ETF(XSD)$ (Equal Weight Semiconductors), 2 of the 20 strongest RS groups in this month’s recovery, is already extended beyond its historical range from the 50-MA (18% vs. 15%) and now sits at -6.7× -7x ATR% — at the 7× mean reversion threshold.

$VanEck Semiconductor ETF(SMH)$ (Semi Giants) with $NVIDIA(NVDA)$ $Taiwan Semiconductor Manufacturing(TSM)$ $Broadcom(AVGO)$ $Intel(INTC)$ $Lam Research(LRCX)$ $KLA-Tencor(KLAC)$ $Advanced Micro Devices(AMD)$ $ASML Holding NV(ASML)$ $Micron Technology(MU)$ $Applied Materials(AMAT)$ $Marvell Technology(MRVL)$ totaling near 70% weight is still 1.5 x ATR% away

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