Tuesday, April 3, 2007

Semiconductor Sales Post Low Year Over Year Totals

From IBD:

Worldwide semiconductor sales rose 4.2% in Feb. to $20.09 bil, but were down from Jan.'s $21.48 bil mark, according to the Semiconductor Industry Association. The SIA's president said that a lower average-selling price and fewer unit shipments were key factors in the slip. The growth was the smallest year-over-year increase since Aug. '05, when it grew 1.7%. UBS said the sales numbers were weaker than expected, but predicted they would rebound for the rest of the year.

Maybe it's the old "I came of age during a tech rally", but I still keep expecting the semiconductor and technology shares overall to break-out in this rally. However, the 5-year charts are less than inspiring. Both the semis and tech shares have been range bound.

Here's the ETF for the SMH (semis) and tech shares, respectively.

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