“On the multiyear weekly chart, we see that this semiconductor ETF managed in February to hold its 2009 support line, and in recent weeks it continued to show relative strength versus the broader U.S. stock market. As such, until the 2009 support line is broken, large institutional money will likely continue to be a buyer on dips in this space,” adds InvestorPlace.
ETF investors who are wary of continued weakness in the semiconductor space can turn to inverse or short semiconductor ETF options to hedge against a dip.
For instance, the ProShares UltraShort Semiconductors (NYSEArca: SSG) takes the -2x or -200% daily performance of the Dow Jones U.S. Semiconductors Index and the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS) provides a -3x or -300% performance of the PHLX Semiconductor Select Index.
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VanEck Vectors Semiconductor ETF