3SOF

Profile:  


Semiconductor HOLDRs

Phone: 800-637-7455

FUND OVERVIEW  

Category: Specialty-Technology
Fund Family: Merrill Lynch, Pierce, Fenner & Smith
Net Assets: 796.83M
Yield: N/A
Fund Inception Date: 4-May-00
Legal Type: Exchange Traded Fund


FUND SUMMARY  
The investment to diversify your investment in the semiconductor industry through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities. The trust holds shares of common stock issued by specified companies that, when initially selected, were involved in the semiconductor business. Except when a reconstitution event, distribution of securities by an underlying issuer or other event occurs, the group of companies will not change. There are currently 20 companies included in the Semiconductor HOLDRS.

One sector that has been strong lately has been the semiconductors. Rather than gamble on a specific semiconductor stock, an investor could look at the Semiconductor Holders (NYSE:SMH) ETF. This ETF tracks several semiconductor stocks and provides some diversification for the average investor. It recently cleared a four-month base that could hold as an important bottom. Ascending Triangle (Continuation) Pattern.

The ascending triangle is a bullish formation that usually forms during an uptrend as a continuation pattern. "There are instances when ascending triangles form as reversal patterns at the end of a downtrend, but they are typically continuation patterns". Regardless of where they form, ascending triangles are bullish patterns that indicate accumulation.


Technicals
Most Actives

Last Price Quote is:
0.98%above 13-day MA
6.34%above 50-day MA
RS Rating: 35 

Fundamentals
Key Data:
Market Cap (M): $818.60 
P/E Ratio: N/A 
PEG Ratio: N/A 
Next Earnings: N/A
Last Analyst Rating: N/A


 

SEMICONDUCTOR HOLDERS CLEAR APRIL HIGH.......

The ability of any stock index or group to clear its April high is a sure sign of strength. In case you haven't noticed, the Semiconductor Holders are doing just that today. I point that out because, up until a couple of months ago, chip stocks were market laggards. Chart 1, however, shows that's no longer the case. Not only is the SMH clearing its April, high, but the SMH/SPX ratio (below chart) has been rising since early September. A number of individual stocks in the group have hit new 52-week highs including (in order of size) Texas Instruments (TXN), Analog-Devices (ADI), Altera (ALTR), Linear Technology (LLTC), Broadcom (BRCM), KLA-Tencor (KLAC), and Novellus (NVLS). One of the biggest chip stocks (which is often viewed as a group bellwether) is Intel which has been a group laggard. But it too is is starting to look a lot stronger. Chart 2 shows Intel trading at a new three-month high after clearing a six-month down trendline and its 200-day moving average. The strong upturn in semiconductors also carries good news for the broader market since it's a big part of the technology sector. And the market is usually stronger when the technology sector (and the Nasdaq) are leading it higher. Another heavily weighted chip stock, Applied Materials, has also just cleared its 200-day line (Chart 3).