Semiconductor exchange traded funds (ETFs) are getting a boost from sector component Micron (NYSE: MU), but the sector may face headwinds as the short sellers and technicalities are a factor.
The semiconductor sector is doing better than it has in more than three years, but some worry that it may be nearing a top. Some analysts forecast that any pullback in the market might spark a sell-off in semis, reports Rodrigo Campos for Reuters. For now, though, the markets are flying high and we’re coming off a strong earnings season.
That often bodes well for semiconductors, beneficiaries of increased corporate IT spending.
Earlier this week the sector did get a shot of strength as shares of Micron are turning in one of the sector’s best performances, with the memory chip maker currently up by 3.8 %. Shares are on pace to close at their highest price since August of 2007, reports RTT staff writer for RTT News.
Is there a pullback in store? Maybe, but for now, you can’t deny that both SPDR S&P Semiconductor (NYSEArca: XSD) (of which Micron is 4.6%) and iShares PHLX SOXX Semiconductor (NYSEArca: SOXX) are more than 20% above their long-term trend lines.
Disclosure NONE.
Interesting post on Semiconductor ETF'S. Theirs more and more sectors all the time.
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