The Semiconductor sector is one of my favorite sectors for reasons we have covered over the last few years. Generally, it boils down to the fact that Semis are the future as they become more and more pervasively utilized beyond the traditional PC and smart phone markets. They are in everything from medical devices to autos to the surveillance states, and on and on.
However, something at Stocktwits caught my eye and had me recall when Warren Buffett inadvertently called the top in gold stocks in August, 2020 as we noted in real time. Well now some hype has cropped about about Mr. B’s buy of Semiconductor stocks. I realize that Berkshire is about long-term investment but still, that 2020 media hype ‘Buffett buys a gold stock!’ sure was epic.
I saw this and immediately wanted to short the Semis. But then I saw that the hype is already taking a hit today (SOX down 3.9%) and decided to leave it alone.
I shorted the Energy sector this morning (per the Trade Log) and would consider shorting the Semis as well (outright on SMH or SOXS) if today’s pullback is not the beginning of a real pullback. Yesterday would have been the day to short. So for now, I just thought it was notable that Warren is being touted again for his stake in another sector. Semis are highly cyclical and cyclical is not my current market view.
SOX is trending down as long as it holds below the August high. I might be interested in shorting * if it gets another pop.
* Although as parroted repeatedly, boring old cash is very interesting now.
