Today's action again was not that bad. I would call it great except that we are still languishing near the highs while overbought and with weakening momentum. And of course the possibility is growing that a weakening dollar is becoming a negative for stocks and bonds. All in all I am making an effort not to read too much into the action and to trying to view the market from the ground up and by sectors.
One thing that stands out a bit is the failing in the SMH (semiconductor holders ETF) and I would point to KLAC (KLA-Tencor) as the main culprit there. INTC (Intel) broke down today and AMAT (Applied Materials) had some earnings problems last week but neither of them seems to show the same problems as KLAC. AMAT even seems to be putting in a very strong pattern in the face of some pretty bad news. Maybe a pairs trade make sense for those two.
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