Mutant Canaries Chirping in Semi Sector?

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  • Post category:Economy

I am having trouble logging into Fidelity and thus managing my own affairs, so time is limited and this post contains no fundamental facts to back up the title other than the 60 min. charts of our original Semiconductor Equipment canaries in the coal mine, LRCX and AMAT, which are getting hammered this morning. Could this canary be 1000 lbs. overweight, have the ability to walk erect and bear big teeth and claws?

lrcx, amat

Contrary to what the “tech expert” who was thrown in my face said 1.5 years ago, it is the equipment stocks that lead the Semi manufacturers, not the other way around. And by the way, the big move in interest rates this morning should not be affecting Semi equipment. It is a sector usually more positively correlated to L/T rates than not.

Who knows, this may just be some negative hype coming from the abstracted suits on Wall Street, or it could be due to real industry events/forecasts. But on November 21 we did note that there was a potential 2018 growth issue on the near horizon.

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