Semiconductor stocks are facing immense problems these days in the market. Most of the mainstream investors have degraded famous semiconductor stocks from Buy to Sell category amid the quick depreciation in the growth rates and value. Discussing the deteriorating semiconductor stocks, CNBC‘s Scott Wapner said that according to the predictable market trends, the semiconductor stocks are not going to get up in the coming weeks.
Comparing the stocks of PHLX Semiconductor (INDEXNASDAQ:SOX) and other information technology stock trends, Wapner said that PHLX Semiconductor (INDEXNASDAQ:SOX) is outperforming most of its competitors and PHLX Semiconductor (INDEXNASDAQ:SOX) stocks went up almost double as compared to Information Technology stocks. PHLX stock showed multiyear intraday high at 651.42 set in the first week of July, up 21.6% year-to-date.
Wapner also discussed the stocks of Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) and said the Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) stock will come down because it has shown massive volatility in the past weeks and though it is on the upside right now, it has got no potential and sustainability to stay up so investors must be ready to see the decline of SMH stock
An expert said that even though stock prices are not that high in the market these days, he will still make a spread for Merrill Lynch Semiconductors HOLDRS ETF (NYSEARCA:SMH) stocks.
Disclosure: None
