Starting to look a bit toppy as a group. Looking for a pullback down to $62 - $63 on the SMH by early winter.
A New Take on Dow Theory: Chips, Not Rails (DIA, IYT) Charles Dow, who co-founded the Wall Street Journal, has been dead for nearly 115 years, so we shouldn't be surprised that his eponymous theory is beginning to show its age. While leaving the basic concept intact, Strategas Research Partners LLC chief investment strategist Jason Trennert suggests in a recent note that one aspect of the Dow theory could use an update. Forget the railroads, look at the chips stocks. Rather than seeking confirmation between the Dow Jones Industrial Average (DJIA) and Dow Jones Transportation Average (DJTA), Trennert proposes, investors should focus on a different sort of transportation when assessing the fundamentals of the economy: the transportation of data, rather than of physical goods. "We wonder whether a better measure of market health in an economy increasingly based on the storage and transport of information technology might not be better based on the NASDAQ and the Philly Semiconductor Index," Strategas' note says. By that measure, the current economic trend is much sunnier than the traditional gauges would suggest. The PowerShares QQQ ETF (QQQ), which tracks the Nasdaq 100, is up 33% since the beginning of 2014, while the iShares PHLX (SOXX), which tracks the Philadelphia Semiconductor Index (SOX), is up 48%. By contrast, the SPDR Dow Jones Industrial Average ETF (DIA) has gained just 12%, while the iShares Transportation Average ETF (IYT), which tracks the DJTA, is up 8%. http://www.investopedia.com/news/ne...not-rails-dia-iyt/?partner=YahooSA&yptr=yahoo
A great long, long term stock, with a possible possibility to get into it at lower levels. Worth to watch it !!
