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Lately, my team and I have been focused on semiconductor stocks… And that’s for a couple of reasons. #1: Strength. They are amongst the few industries that are thriving in the new year… In fact, the Semiconductor ETF, the SOXX, just surpassed the Magnificent 7 in yearly performance. #2 Aggressive Option Buying In The Semis In the last few days, we’ve seen several semiconductor tickers hit the options scanner. That includes mainstream names like NVDA and AMD. But also, less popular names like ASML, LRCX, AMAT, and SCMI… To me, this is a bullish sign that semiconductors could outperform in the month ahead. #3 February Earnings Barrage As mentioned above, we’re seeing a lot of bullish call buying in the semiconductor names. But, even more importantly, we’re seeing bullish buying ahead of earnings. For example, ASML flashed in the scanner on January 23rd… The next day the stock soared 14% on the news of a positive earnings release... But here is the thing…. The majority of semiconductor earnings are in February… We’ve already seen a handful of tickers BEAT earnings in January… But we think there are more to come in Feb. And that’s part of the reason Jack Carter and I are hosting a free session on Monday afternoon. We will talk about the opportunity to trade semiconductor stocks in the month ahead. So, if you’d like to join us, just go to this page here and enter your email address. When you do, I'll share the NINE stocks we will look at in the week ahead. |
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