February 11, 2021, 1:09 pm EST
Weak Market, Strong Semiconductor
DJIA is down about -150 points as of now. But semiconductor (SMH) is up +2.6% as one of the strongest industries in recent weeks. A leader like Nvidia (NVDA) +2% keeps performing well that reflects the need for semiconductor chips to cover almost all electronics or even mechanic equipment everywhere.
For example, the automobile industry used to be mechanical parts with combustion engines. An electrical car like Tesla (TSLA) and autopilot function with a glass panel cannot be made with a computer chip. Thus, the future for semiconductors is bright from all perspectives.
But the stock market itself looks exhaustive in terms of dwindle volume in recent weeks. It illustrated internal weakness in a new high area. There is no fatal reversal signal yet but it is always to be cautious after the extended rally and low volume at the top.
