Invested Central Chart of the Day
|
Successful traders have one thing in common - they
maximize returns while minimizing risks. Each day our Chief Market
Strategist Tom Bowley selects a strong reward to risk candidate,
with fully annotated specific entry and exit points, that provides
you with a potential trade that's also highly educational. Subscribe to
our free newsletter and we'll send you a new chart each Monday
morning before the market opens, along with exclusive commentary and
analysis each weekend! |
|
Members can
click
here to view the Chart of the Day archives.
Chart of the Day for June 17, 2013: $SOX
The Philadelphia Semiconductor Index (SOX) tracks 30 semiconductor stocks including such well-known names as Intel (INTC) and Texas Instruments (TXN). As the economy improves, so do the manufacturing efficiencies of many of the companies in this space. As a result, this index tends to perform extremely well during periods of economic improvement, generally helping to lead the overall market on a relative basis. The featured chart shows how improvement in this index is positively correlated with a strong S&P 500 index. Because many of the companies within this index cannot sustain their bottom line growth over long periods, the index tends to quickly move through boom and bust periods. The chart below illustrates this general concept over the past decade.
You should consider these educational charts and analysis for possible short-term trades only. We are not registered investment advisors and the following trade setups should not be viewed as investment advice. Accordingly, please check with your financial advisor before deciding to buy or sell any of these investment securities. Read our full Disclaimer below.
Because we do not recommend holding a stock into its earnings report, please check all earnings dates on Charts of the Day stocks before making a decision on whether to consider a trade.
| 
