Semiconductors have broken out in recent days and that bodes well for the overall market.  We still need to come in a bit after a steep incline, but if the semis can stage a run here, that would lend good internal strength for the market to hold up at multi year highs.  The Semi Holders (SMH) is the strongest of the Semiconductor ETF’s with Texas Instruments (TXN), Intel (INTC) and Applied Materials (AMAT) making up a little more than 50% of the fund.  It got a big boost following Texas Instruments’ earnings report yesterday after the bell.

    

The Ishares Semis (IGW) broke out today, but volume hasn’t been impressive yet.  This is a much more diversified fund with no companies dominating in the allocation.

    

ETF’s are a good diversified way to play a break out in the semis, but I prefer to play invidual stocks which, while riskier, offer much greater reward.  I should mention I am only holding positions for a short period at this time, looking to capture quick profits over a couple days.  I’m waiting for the market to digest recent gains before initiating positions for the longer term.  Here’s a sampling of the bullish charts I’m seeing in the semiconductor space. 

Note: the companies highlighted are not necessarily good fundamentally, but all look great technically.  Do your own research on these and know when they report earnings. 

     

    

    

    

    

Disclaimer: I currently own positions in TRT and SOLF