SMH Bulls Are 70% Sure This V-Shape Is Real — Here's What Earnings Season Has to Say About That
Social sentiment is screaming 'bull flag' while Treasury yields and Strait of Hormuz drama lurk in the background
Ticker Ratings
| Ticker | Rating | Entry Price | Current | $ Gain | % Gain |
|---|---|---|---|---|---|
| SPY SPDR S&P 500 ETF TRUST | hold | $679.46 | — | — | — |
The charts are speaking and retail is listening. TheChartGuys came out 70% bullish on a V-shaped recovery, with semiconductors — think $SMH and $SOXX — leading the charge and setting up textbook bull flags. The S&P 500 just strung together seven consecutive green days on ceasefire optimism, and the crowd is watching daily higher lows on $SPY and the Nasdaq like hawks watch a Chipotle drive-through.
But here's the plot twist nobody at the restaurant wants to split: gas prices are up 40% — that's $1.17 per gallon — since the war kicked off, and Treasury yields are flirting with 5-6%+ territory. As Andrei Jikh's latest video spells out, when bonds yield guaranteed returns that juicy, equities have to actually earn their valuations. Earnings season isn't a vibe check anymore — it's a stress test.
The sector rotation question is the one keeping traders up at night: do semis consolidate while other sectors carry the baton, or does everything drop together like a bad bill split? If the Strait of Hormuz stays closed and the Fed blinks, $SMH bulls might be eating a $10 salad and calling it a win.