Semis stocks crashed 27% the last time the charts flashed this signal

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Semis stocks crashed 27% the last time the charts flashed this signal $SMH $SOXX $AMD $TXN (via TradingNation)

, chief market strategist at Miller Tabak, says momentum could take the group higher, though one technical indicator is making him nervous." on Wednesday. "It's now at a 61% premium to its 200-week moving average. There's only one other time that it was at more of a premium to that average since the credit crisis."

"Also, if you look at the weekly [relative strength] chart, it's right at a level here that has been followed by significant or fairly decent pullbacks in the group several times in the past," said Maley. "Chips are trading very much on 'hope-ium'," Schlossberg said during the same segment. "Shorting momentum is very dangerous, but having said this at this point if you look atwhich is the poster child for the whole sector, it's trading [265] times trailing earnings. That's a great company, but the stock is essentially set up to fail."

 

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