• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Soaring Semiconductors Carry NASDAQ To Key High; A Solid Trade Off An Earnings Gap
Stock

Soaring Semiconductors Carry NASDAQ To Key High; A Solid Trade Off An Earnings Gap

by November 12, 2023
by November 12, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

It was another very solid day on Friday, this time with the S&P 500 powering above 4400 and the NASDAQ 100 busting back above 15500, both clearing key price resistance levels that effectively end the series of lower highs and lower lows from the July high. The best news of all is that growth continues to be the driver behind market strength. On Friday, the Dow Jones U.S. Semiconductor Index ($DJUSSC) jumped another 3.7%, rapidly approaching the July and all-time high of 10430. The DJUSSC needs only another 2.6% gain to break to yet another all-time high:

Notice that the RSI has now moved back through 60, showing more bull market readings and behavior. The green arrows mark RSI support in the 40-50 range during secular bull market advances. The two bear markets, one in 2020 and the other in 2022, saw the RSI fall well below 40. The behavior in the RSI right now is absolutely bullish.

I do a TON of research during earnings season, highlighting key earnings gaps where we tend to see successful tests and reversals. While we’ve seen several nice gaps higher in semiconductors, here are two outside that group that occurred recently:

DASH

DoorDash, Inc. (DASH) recently reported the following revenues and EPS:

Revenues: $2.16 billion (actual) vs. $2.09 billion (estimate)EPS: -$0.19 (actual) vs. -$0.45 (estimate)

After blowing away estimates, DASH gapped up 12% from 75.90 to 85.09. After reaching an intraday high of 93.19 the next day, DASH fell back and tested the top of gap support at 85.09 on Thursday. On Friday, DASH jumped off of gap support to the tune of 3.48%. While a drop to the rising 20-day EMA is certainly a possibility, I believe we’ll see DASH breaking out above 93 in the not-too-distant future:

The internet group ($DJUSNS) has been another very bright industry group, easily outperforming the benchmark S&P 500 throughout 2023. So DASH is not only a stock that crushed revenue and EPS expectations, but it hails from one of the best industry groups of 2023.

DASH hasn’t had a long history as a public company, but it has performed well in November as you can see from the seasonality chart below:

The average November gain is at 14.1%, which is higher than any other month of the year. Again, there’s not a lot of history to go on here, but DASH does at least show a tendency to move higher this time of year. December hasn’t been all that bullish, but January is the 2nd best month of the year for DASH. I like to see earnings-related technical breakouts line up with seasonal tailwinds. DASH does exactly that.

If you haven’t already taken me up on my offer to download my Bowley Trend seasonality PDF, please do so. Learn the long-term historical tendencies so that you can better time your trades. There’s one period – the same days – every month that represents roughly 1/3 of the calendar month, but have produced more than 80% of the S&P 500 gains. If you’re not taking advantage of this historical pattern, it’ll be much more difficult to beat the S&P 500. You can CLICK HERE to download your FREE COPY of my Bowley Trends PDF to better understand history and to improve your trading results. By signing up, you’ll also receive my EB Digest newsletter on Monday that features a stock likely to surge higher into its earnings report in December. Be sure to check it out, along with the PDF!

Happy trading!

Tom

You Might Also Like
  • Dow Jones and S&P 500 Close At Record High — Time to Add Tech Stocks To Your Portfolio?
  • Top Stock Areas After the Rally: What Smart Money Is Buying
  • The Second Half Equities Super Bowl
  • Earnings for 2023 Q2, Still Trending Up
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Decisions in 14th Amendment cases could impact pending Colorado, Michigan efforts to remove Trump from ballot
next post
Poland sees massive nationalist march honoring ‘God, family and Fatherland’ after globalist election results

You may also like

Market Breadth Gains Momentum; Don’t Fight the Market, Stay Cautious

December 21, 2023

MEM TV: Risk-Off Signals Possible Downside Ahead

March 16, 2024

Looking for the Next Entry Point in SPY? USE RSI!

August 22, 2024

Technology Stocks Back In the Lead: Are Inflation Fears Behind...

May 3, 2024

This Li’l Checkbox is KEY When Comparing Stocks & Charting...

December 9, 2023

Analyze This: Will the Dow Will Soar or Crash in...

June 20, 2024

Energy Stocks in the Spotlight: A Look at Diamondback Energy

September 6, 2023

Week Ahead: NIFTY Holds 50-Week MA; Low VIX Calls For...

March 4, 2023

This Is The Only Segment Of The Market Worth Paying...

September 18, 2023

Navigating Uncertain Times: Market Recap with Mish Schneider

October 10, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Top Techniques for Finding Strength in...

    December 11, 2024

    5 New Year’s Resolutions to Transform...

    December 27, 2024

    Flying Financials. Will It Be Enough?

    July 26, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here