EarningsBeats Digest

Published: Wed, 01/12/22

EarningsBeats.com Digest for January 12, 2022

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Exploring the ETF Analyzer

Wednesday, January 12th at 5:30pm ET

Join Tom Bowley, Chief Market Strategist for an in depth walkthrough of our ETF Analyzer tool in Microsoft Excel. Our motto at EarningsBeats is to "know what you own," which is made much easier with our tool. You won't want to miss this session!

This event is open to the public and YOU'RE INVITED. You'll receive room instructions later today. The event will be recorded for those unable to attend live. See you there!

One ETF That Could Hold The Entire Market In Its Hands

Since 2013, there has been no better industry group than semiconductors ($DJUSSC). The DJUSSC was trading at 1206.40 at the close on April 10, 2013. That was the day that the S&P 500 finally cleared its double top secular bear market resistance from 2000 and 2007. The DJUSSC now trades at 9160.51, 659% higher than it did nearly 9 years ago. It's the undisputed growth leader and growth stocks have been under fire with higher inflation and the threat of higher interest rates and tightening Fed policy. So it makes sense that we follow the prospects of semiconductors quite closely:

The long-term weekly chart above is still "up in the air", in my opinion. There was a negative divergence throughout 2021. Did the weakness in September do enough to qualify as a "reset" of momentum? Or do we still have a negative divergence? I'm not sure, but the absolute and relative congestion (red circles) on the chart at least raise some doubt. I believe the next big move on the DJUSSC - either a breakout to the upside or breakdown to the downside - will be the most important signal that we'll receive. Could we see our first 50-week SMA test since April 2020? If so, then it would argue for a very weak period ahead.

An ETF that tracks many of the large cap semiconductor names is the iShares Semiconductor ETF (SOXX). Of all the ETFs in the universe, this is the one I'd follow most closely. It tracks the DJUSSC quite closely and if growth stocks move, we'll know it from this ETF.

Later today, at 5:30pm ET, we're hosting an ETF Analyzer session to help provide us more knowledge about semiconductor ETFs and others in order to make more informed investing and trading decisions. It's a free event, so I hope you'll be able to join!

Happy Trading!

Tom Bowley
Chief Market Strategist

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