9 Minute Read

Tackle Today: When Bulls Engulf

May 26, 2021

By | No Comments

Semis are Trying to Bottom 


Semiconductor stocks sit at the intersection of growth and technology. Last year their location was perfect. Growth stocks were booming, and technology was the hot sector. This year? Not so much. If you’ve been following our Halftime Reports and weekend Scouting Reports, then you know we haven’t thrown much love toward chip stocks lately.

Their souring price charts have demanded as much.

But on May 19th, something changed. Did you spot it? The Semiconductor ETF (SMH) gapped down hard at the open, only to rip higher throughout the session. In the process a bullish engulfing candle formed. The Nasdaq looked similar. What’s more, volume surged which showed institutions piling in.

As a result of the potent reversal candle, I highlighted semiconductors as one of my picks in the May 19th Trade Masters. The follow through we saw on May 20th confirmed the legitimacy of the prior day’s runup.

This is what clear technical signals look like. And it’s why we’re advocates of chart reading if you’re in the business of timing markets. Time will tell if buyers can press their newfound advantage, but there’s no denying SMH looks better now than it has at any time over the past six weeks.


Chart of the Day

Bulls Return to Semiconductors

SMH held support at $224 with a high volume bullish engulfing candle. That’s short-term bullish and should scare sellers away for a spell.

Video of the day

What is Support?

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Trading Lounge at Night 8:30 PM EST

Join Greg Holmes tonight as he hosts the second of our Trading Lounges today.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Trade Masters 7:00 pm EST

Join us for a special webinar with the coaches where they’ll analyze some trade setups.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Leave a Reply

Chart Modal

Tackle Trading