You simply can't have a bull market without semiconductors.
They’ve been the poster child of this cycle. But, it’s bigger than that.
They are the most important companies in the world. The lifeblood of the global supply chain. The gas for the globalized economy. Semiconductors make it all work. They are in everything.
However, for the last six months, semis have been catching their breath, chopping sideways in a tight range on both an absolute and relative basis.
That changed today as the VanEck Semiconductors ETF $SMH finally broke out, clearing a shelf of Q4 highs around 264.50.
If we’re above this polarity zone, the path of least resistance is higher, and all-time highs feel inevitable.
The chips are on the table, and they’re stacking up for the bulls.
Under this scenario it's hard to imagine the rest of the market won't follow suit.
