August 22, 2024

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Semiconductor Buying

Please click here for a chart of semiconductor ETF (SMH).

Note the following:

• The chart shows the moves in semiconductors after prior Nvidia (NVDA) earnings.
• The chart shows that semiconductors traced a double top, which is a negative pattern, and then dropped to the support zone.
• The chart shows that semiconductors bounced off of the support zone.
• RSI on the chart shows that semiconductors are overbought.  Overbought markets tend to be vulnerable to the downside.
• The momo crowd is aggressively buying semiconductors ahead of Nvidia earnings as they believe semiconductors will rise after Nvidia earnings just like they have in the past.