XILINX LEADS SEMICONDUCTOR ISHARES TO THE HIGHEST LEVEL IN NEARLY TWO MONTHS -- LAM RESEARCH IS ALSO HAVING A VERY STRONG DAY -- INTEL CLEARS 200-DAY AVERAGE TO LEAD DOW HIGHER
SEMICONDUCTOR ISHARES TURN UP... My message from yesterday showed semiconductor stocks under selling pressure. In today's trading, however, semis are having a very strong day and are the day's strongest stock group. Chart 1 shows the PHLX Semiconductor iShares (SOXX) jumping 5% to reach the highest level since early December. That puts the SOXX on track to challenge overhead resistance at its early December peak and its 200-day moving average (red line). Xilinx (XLNX) reported strong earnings after last night's close and is surging 18% today to a new record. Lam Research (LRCX) is up more than 15% on strong earnings as well. Chart 2 shows that chip leader nearing a test of its early December peak and 200-day average. Other chip gainers include Applied Materials (AMAT), Micron Technology (MU), and KLA Tencor (KLAC). Intel is the biggest percentage gainer in the Dow. Chart 3 shows Intel (INTC) trading above its 200-day moving average, and nearing a test of its early December intra-day peak at 50.49. A close above that chart barrier would be a very positive sign. Intel reports earnings after today's close.
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Chart 1
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Chart 2
