"JUST LAST WEEK, the semiconductor HOLDRs trust ETF (SMH) was on the verge of confirming a downside break. It had already moved under its 50-day moving average with a surge in volume and was in the process of "testing" that break with a low volume run back to previous support (see Chart 1)," Michael Kahn Reports From Barrons.
"However, on October 9, the ETF surged over 3% with its heaviest volume since May. False breakdowns such as this often lead to breaks in the opposite direction as prices act as if they were launched by a compressed spring. As of Monday morning, the semiconductor ETF has moved above resistance to a fresh rally high before easing back in the afternoon," Kahn Reports.
"Technical purists might object to the term "spring" as it is an actual pattern observed 80 years ago by master technical analyst Richard Wyckoff. However, the sprit of the pattern has indeed been met as the mood in the sector went from sad to glad in short order," Kahn Reports.
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The investment (SMH) to diversify your investment in the semiconductor industry through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities. The trust holds shares of common stock issued by specified companies that, when initially selected, were involved in the semiconductor business. Except when a reconstitution event, distribution of securities by an underlying issuer or other event occurs, the group of companies will not change. There are currently 20 companies included in the Semiconductor HOLDRS.
| TOP 10 HOLDINGS (SMH) ( 89.00% OF TOTAL ASSETS) |
|
| Company |
Symbol |
% Assets |
| Altera Corporation |
(ALTR) |
4.83 |
| ANALOG DEVICES |
(ADI) |
6.46 |
| Applied Materials, Inc. |
(AMAT) |
13.55 |
| Broadcom Corporation |
(BRCM) |
3.53 |
| Intel Corporation |
(INTC) |
23.06 |
| KLA-Tencor Corporation |
(KLAC) |
4.16 |
| Linear Technology Corporation |
(LLTC) |
5.39 |
| NATL SEMICONDUCTOR |
(NSM) |
3.25 |
| TEXAS INSTRUMENTS |
(TXN) |
20.21 |
| Xilinx, Inc. |
(XLNX) |
4.56 |
|
