I mentioned on Friday that I took profits. With the big money I had no trade on the table. Sitting in cash is what worked today. My stocks got pummeled though so that sucked.

CBST – That trade worked today. Made a little bit today. They report Wednesday.

I thought it was very interesting how bad of a hit the SMH – semiconductors took today. The SMH is pretty much testing the lows of August (on a closing basis). Depends on what charting service you use to see this action. StockCharts for some reason doesn’t show it, but Quote Tracker, Qcharts/Esignal, and Google.

Now I like to predict what pattern will eventually happen before the pattern on a chart is “officially” there. I trade pre-pattern and when the pattern is official. It doesn’t matter to me.

What I think could happen here is that we might be seeing a double bottom in the making on the SMH. With the SMH price action today and maybe tomorrow. Intel reports after the bell. I have a positive bias on INTC (I think INTC could hit 35 within 9 months), so I’m leaning more towards this being a positive pattern brewing for SMH and particularly just the beginning of the move.

**late edit: forgot to mention the option volume today in the SMH out of the money (now) 37.5 calls. Don’t know if that was selling or buying, but with INTC reporting tomorrow AH it seems like a “setup” to me.

I’m including a daily chart and weekly chart.

I am considering getting long before the market closes tomorrow hoping Intel has a good number and we can rally on that. This week will probably be volatile though due to options expiration, but it might be good for a short term trade. Once we get out of Oex, the semiconductor trade might be on, but one doesn’t have to jump the gun on that.

Some stocks that stayed above water today for me were:

GLOB

KTOS

AZK

GSS

UVE – barely.

Thanks for reading

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