Chips Finally Confirm the Rally

We were wondering if it was going to happen at all, but the weekly buy signal the semiconductors gave finally proved itself to be legitimate. As early as Wednesday morning the SOX index looked like a great short as it traded in a bear flag. Shorts were disappointed as the index, along with the SMH, exploded higher. This at least answers one question about this bull move. Sentiment is getting overly bullish, so look for a pullback at a minimum near current levels. This rally does look tradable and the longer term concerns we have been expressing shouldn't get in the way of making money in the short run.