Semiconductor Watch

My $38 line in the sand on Semiconductors (SMH) is almost at hand (blogged it a few weeks ago). We have fallen a quiick 8-10 percent into this major area of support.

If we rip down through $38, I would be very cautious about adding new positions in tech and would expect to get stopped out of more positions.

With the ass wuppin’ in financials, homebuilders, and semiconductors all accelerating I would be surprised if the bulls did not make a big stand somewhere in here soon. If I was trading, I would be.

I am getting pitched a lot of homebuilder bonds from brokers. There is major, major fear in this space right now. Too much. I am not biting any more. I am just going to go and write a few Wallstrip’s :) . In the old days, I would be taking in these stocks and bonds…big time.