A couple of the more impressive charts in the stock market are chipmakers Altera and Xilinx. A bit less impressive in terms of recent runup, but still looking strong, are Microchip Technology and Taiwan Semi. All these chip stocks are out-performing the major indexes. Worth looking at for those who want to consider new long positions here.
In energy stocks, a number of the majors have “W” chart patterns similar to the commodities ETF we posted the other day: ConocoPhillips, Devon Energy, Occidental Petroleum. There may be good action here on the long side when the market correction ends.
On the bigger picture, early market reaction to earnings has been mostly positive; the SPX gapped up and regained the 50 day, closing at the top of the trend channel with a pickup in volume. We could be seeing a breakout attempt this week. It may be just a head fake, but I will be on watch for follow through. New long positions could be initiated if we get through these levels.
Disclosure: I am long MCHP, COP and OXY.