NFTRH+; A Canary Weakens

A ‘for reference’ update to be filed in the ‘may be nothing, may be something’ category. My job is to try to find early potential signals but not to over react to them.

We’ve long viewed the Semiconductor Equipment and Materials segments as a canary in a coal mine to economic cycles. The theory goes like this… Semi Equipment > Semi > Manufacturing > Broad Economy > Jobs, etc… This worked well in 2013.

With all the disturbances the economy has seen by first being altered to the Trump vision of inflation/reflation and trade wars and then the COVID-19 disaster, who knows if the logical chain is still valid.

But in the event that it is, early bird AMAT may be losing its daily SMA 50.


LRCX as well.

This maker of Materials used by Semi wafer manufacturers is still intact, but has been declining against the overall market’s rise.