Semiconductors have been showing relative weakness as the Federal Reserve continues to execute QT. Higher interest rates have contracted stock prices and will most likely contract earnings within the next two quarters. The semiconductor sector is one that traded to what we can consider a bubble during the last two years; the market is no longer "risk on" as we can see by the damage that has been done to the bond market.
Technicals on $SMH provide a Head & Shoulder pattern on the weekly timeframe; the stock has already broken down from the neckline and has retested its respected weekly EMAs. Bearish traders can short this via leap put options or by selling short shares of $SMH or its holdings. Puts with strikes of 130 and 125 look attractive for October.
OptionsSwing Analyst
Daniel Betancourt
Technicals on $SMH provide a Head & Shoulder pattern on the weekly timeframe; the stock has already broken down from the neckline and has retested its respected weekly EMAs. Bearish traders can short this via leap put options or by selling short shares of $SMH or its holdings. Puts with strikes of 130 and 125 look attractive for October.
OptionsSwing Analyst
Daniel Betancourt