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Actionable news in QCOM: QUALCOMM Incorporated,

Semiconductor Stocks Are in a Momentum Bull Market

This year has been a bull market for semiconductors, as the PHLX Semiconductor Index, known as the SOX, is up 44.4% since trading as low as 552.26 on Feb. 11.

Broadcom (AVGO) , Intel (INTC) , Micron (MU) , Qualcomm (QCOM) and Skyworks (SWKS) are five of the 30 components of the SOX , and they all have bull market gains between 31.1% and 87.4% since their Jan. 20 to Feb. 11 lows.

Semiconductor leadership is a pleasant surprise, given the weak global economy and meager growth in the U.S. Renewed demand for semiconductors is normally a sign of economic growth, as a huge number of products, from durables such as automobiles to the smallest hand-held devices contain computing chips.

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The weekly charts show a red line through the price bars, marking the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average, the "reversion to the mean." The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold. A negative weekly chart shows the stock below its key weekly moving average, with weekly momentum declining below 80.00 in a trend toward 20.00.

Here's today's scorecard for the SOX and the five components charted today.

Here's the weekly chart for Broadcom.

Courtesy of MetaStock Xenith

Broadcom closed Thursday at $168.38, up 16% year to date. It is in bull market territory, 47.4% above its Feb. 11 low of $114.25. The stock is 6.2% below its all-time intraday high of $179.42, set on Aug. 30, but is above its 50-day simple moving average of $166.25.

The weekly chart for Broadcom is positive but overbought, but shifts to neutral if the stock ends the week below its key weekly moving average of...


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