Will The Chip Stocks Sink The Market on June 14

US Markets

  • S&P 500 Futures – 10 points
  • US 10-Year 2.06%
  • Dollar Index 97.17
  • VIX 16.25
  • Oil $52.08

International Markets

  • Japan Nikkei +0.40%
  • China Shanghai Comp. -0.99%
  • Hong Kong HSI -0.65%
  • South Korea Kospi -0.37%
  • Germany DAX -0.83%
  • UK FTSE -0.60%

Will Semis Sink Stocks on June 14

Stocks are pointing to a lower opening on June 14, and this will give us a good chance to see how resilient the market is. The negative news out of Broadcom last night is enough to send not just the chip stocks lower but the entire market. It will be interesting to see if investors use this weakness as an oppurunity to come into the market and scoop up stocks. Or perhaps even pressure the market lower.

S&P 500

The decline in the E-mini S&P Futures looks minor at this point and doesn’t point to much damage on any of the technicals at this point.

S&P futures

S&P futures

Chips Stocks  – (SMH)

The SMH had appeared as if it was getting ready to make a move higher. However, that changed last night. Should the ETF fall below $102.25 today, it likely means a retest of support at $100. But if the ETF can hold above $102.25, then it is a good sign that the ETF can survive the Broadcom fall out.

smh, semis

smh, semis

Micron (MUWealth Strength IndexAAPL is Extremely Up and trending Up)

Micron is one of the next chip companies to report results, and from the way things are set up, I am beginning to believe they will have to reset their second-half recovery expectations. The stock has managed to hang on a  few times at support around $32. But this will be a real test for the stock. A drop below $32 sends the share much lower maybe to $29.

micron, mu

micron, mu

Nvidia (NVDAWealth Strength IndexAAPL is Extremely Up and trending Up)

Nvidia looks as if it may be heading back to $139.

nvidia, nvda

nvidia, nvda

Qualcomm (QCOMWealth Strength IndexAAPL is Extremely Up and trending Up)

Qualcomm may be heading to $65.

qualcomm, qcom

qualcomm, qcom

AMD (AMD)

AMD is in the same tight spot and looks like $29.40 is its next stop. amd stock june 14

amd stock june 14

Lam Research (LRCXWealth Strength IndexAAPL is Extremely Up and trending Up)

Lam Research could be on its way to $169.

lam, stock, june 14

lam, stock, june 14

That’s it.

Mike

This article appeared first on Mott Capital Management.

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.