The health care sector ETF, shown below, peaked early this year and has been downtrending ever since. In particular, it has made three unsuccessful attempts to push back resistance, represented by the magenta line I’ve drawn.
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Semiconductor Canaries: Chirp, Warble… Soon a Croak and Silence?
In light of earnings reactions in the Semiconductor Equipment sector, it’s time for an update of a theme we have had in play since November, 2017
The canary is no longer chirping in a healthy manner and the economy’s coal mine has a toxic gas leak. While the recent Lam Research (LRCX) earnings report was pretty good and there were positive aspects to that of Applied Materials (AMAT), these highly cyclical companies that have been at the front end of the entire economic cycle that had its beginnings in 2013 are showing signs of wear.
Business is still good but when you are talking about cyclical leaders, it is growth rate that matters. I have read article after article touting strong current business and future drivers that will change the typical Semiconductor cycle as next generation Fabs are needed for ever more dynamic specialty chips for higher-end devices.
Applied Materials Slides After Softer Q3 Forecasts on Weaker Smartphone Demand
“Smartphone sales have been below expectations, particularly for high-end models, and in response, both semiconductor and display suppliers have made adjustments to their capacity planning,” CEO Gary Dickerson told investors on a conference call. “With inventory rebalance that we’re seeing from smartphones, we’re going to see a sequential dip in the Q3. But from our guidance into Q4, you can see that it recovers nicely into Q4.”
Semiconductors Gap Almost Closed
About Those Medical Device Companies
Yesterday we took a look at the bullish SYK breakout and the bullish chart of the Medical Device iShares (IHI). So here is the thing; bullish stocks are one thing and sound business is another. Many of these device/equipment companies have long-standing and sound businesses.
But yet another thing is valuation. In combing through IHI’s holdings today, looking at charts, business specifics and P/E & P/S I am struck by how over valued and over played the sector is by the suits, who evidently have read my many assertions that the sector is stable during economic soft patches. Just kidding, but… Wall Street loves themselves some medical device companies these days. IHI’s holdings… (more…)
