November 4, 2021, 5:01 pm EDT
A Strong Day for Semiconductor Industry
Today Dow Jones was down but S&P 500 and Nasdaq kept moving higher. Nasdaq was up +0.8% whereas semiconductor was particularly strong with many large caps reached more than +3% gains: NVDA, QCOM, AMD, AMAT, MCHP, KLAC, ON, XLNX, TSM, MRVL, TER.
There is no doubt that semiconductors took the leadership on this extension of late bull cycles.
Consequently, the Electronic Design Automation industry, which makes software for the semiconductor industry, also rides the wave higher: CDNS, SNPS, ANSS.
All major indexes reached the overbought areas where major indexes got 7-12% gains since early October. But, leadership in the semiconductor, mega-cap (TSLA, MSFT, GOOGL), recovery consumer discretionary, and automobile (F, GM) re-charge the stock markets.
Thus, the strategy is to focus on the winning list to ride the uphills.