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NEW YORK ( TheStreet) -- The PHLX Semiconductor Sector Index(SOXX) has gained 12.4% since setting a fiscal cliff bungee bottom at 349.79 on Nov. 16. On Wednesday the SOX had a gap open above its 200-day simple moving average at 388.68. Even so the SOX is 12.5% below its 2012 high at 444.96 set March 27.
The last time I profiled stocks in the SOX was on Sept. 25 in
The SOX May Provide Another Warning
as this index gapped below its 200-day SMA setting the stage for the down trend to that Nov. 16 low.
Among the 10 stocks I profiled in that post six were rated buy according to
www.ValuEngine.com. Since then each of these names have been downgraded to hold.
The computer and technology sector is 9.9% overvalued with the electronics semiconductor industry 16.4% overvalued.
The daily chart for the SOX (389.69) shows rising momentum with the index above its 21-day, 50-day and 200-day SMAs at 377.20, 372.80 and 388.68. My weekly value level is 379.60 with quarterly risky level at 439.97.
Chart Courtesy of Thomson/Reuters
Reading the Table
OV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.
Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.
Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.
Value Level: The price at which to enter a GTC limit order to buy on weakness. The letters mean; W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.