Semiconductors: Time to Buy
​Aligning with our optimistic outlook, the Sell in May and Go Away axiom is a dud so far this year, with the S&P 500 positive by nearly 2% since the beginning of the month. This is particularly true for Technology (overweight). The Sector has more than doubled the market’s advance over the same period, producing an internal leader in the process: semiconductors.
Looking at the charts, one by one, semi stocks are bullishly inflecting, many above secular support levels (e.g. LLTC). And it’s the long-term charts that tell the true story. While most daily charts, though improving, still depict erratic whipsaws, weekly and monthly charts exhibit intact trends, and, more importantly, our Group charts display bullish, relative strength bases, unaffected by the weak start to the year. For these reasons, we recommend increasing exposure to semis.
In the following pages we highlight a selection of actionable semi and semi-equipment names, ranging across the market cap spectrum.
Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.
Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.
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