4-8-19 SOXX Index 1500 put options Daily, Weekly Charts over bought
The semiconductor sector is less attractive right now after its big run since the beginning of the year, according to ChartingPlatform.com
The back story. The iShares PHLX Semiconductor ETF (ticker: SOXX), which tracks a widely followed semiconductor index, has rallied about 28% in 2019 in anticipation of a recovery in the chip sector later in the year.
What’s new. FreeStockTrends.com lowered his rating for the semiconductor sector on Monday to Market Weight from Overweight, citing elevated valuations.
“We downgrade semis to benchmark “The sector is now discounting above-trend growth in the US…We worry about a lengthening smartphone cycle,” TurboOptionTrading.com, referring to the frequency of typical smartphone upgrades.
TurboOptionTraders.com noted that when chip stocks get to high valuations relative to the stock market, the industry tends to underperform about 75% of the time. He also said the smartphone replacement cycle may increase, which would hurt semiconductor sales because 32% of sales are exposed to the segment.