Semiconductors May Start Putting In A Top

Semiconductors could start putting in a top over the next week. For the week ending September 22, 2017, we could see sideways action next week to about 1% – 2% higher by the end of the week. After that, we could see the seasonal month of September (weakest month of the year for stocks) kick in and take SOXX back down to its long term uptrend line near $151.

business soxx chart 9 17 17 1100x646 - Semiconductors May Start Putting In A Top

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Aehr Test Systems Stock Shows Large Players Quietly Accumulating

Aehr Test Systems stock has formed a positive divergence between large players volume and the price chart. Large players are accumulating the stock as it has pulled back over the last few days. Before we get to the chart, let’s look at what Aehr does and why this stock could have explosive growth going forward.

Aehr Test Systems Company Profile

Aehr Test was incorporated in the state of California on May 25, 1977 and completed its initial public offering on June 11, 1997. The Company’s common stock trades on the NASDAQ Capital Market under the symbol AEHR.

Aehr Test is a global semiconductor manufacturer. The Company has sales and service operations in the United States, Japan, Germany and Taiwan, and has established a network of distributors and sales representatives in certain key parts of the world. Its corporate headquarters are located in Fremont, California.

Aehr Test Systems is a worldwide supplier of systems for burning-in and testing memory and logic integrated circuits and has an installed base of more than 2,500 systems worldwide. Aehr Test has developed and introduced several innovative products, including the ABTS, FOXTM and MAX systems and the DiePak® carrier. The ABTS system is Aehr Test’s newest system for packaged part test during burn-in for both low-power and high-power logic as well as all common types of memory devices. The FOX system is a full wafer contact test and burn-in system. The MAX system can effectively burn-in and functionally test complex devices, such as digital signal processors, microprocessors, microcontrollers and systems-on-a-chip. The DiePak carrier is a reusable, temporary package that enables IC manufacturers to perform cost-effective final test and burn-in of bare die.

Aehr Test Systems News

On July 12, 2017, Aehr Test Systems announced that it received a follow-on order exceeding $3.8 million for multiple ABTS test and burn-in systems from a leading multi-national manufacturer of advanced logic integrated circuits (ICs) for automotive, embedded processing, digital signal processing and analog applications. The order also includes down payments to lock in delivery dates. The ABTS systems are planned to ship by the end of calendar year 2017.

Mark Allison, Vice President of Sales, said, “We are pleased to receive another follow-on order from this customer, who continues to run at full capacity in their burn-in and test areas. Our ABTS Systems, with their individual temperature control capability for high-power devices, are a key part of this customer’s quality and reliability program for their expanding line of automotive products, and are helping companies that supply devices into the automotive sensor, mobile communications, IC, and Internet of Things markets meet the higher quality and reliability needs of these markets. The ABTS system capabilities, along with our superior customer support, have more than met the expectations of this customer. This has led to a mutually beneficial business relationship resulting in our largest installed base of ABTS systems.”

Aehr appears to be benefiting from the rapid growth in automotive sensor technologies. This includes Advanced Driver Assistance Systems (ADAS) such as collision avoidance systems using LIDAR (Light Detection and Ranging), RADAR or other sensing technologies. Autonomous vehicles use collision avoidance systems to detect obstacles and to navigate safely through dangerous environments. Reliability of the devices in these systems is especially critical for autonomous driving applications so that means manufacturers of ICs in the automotive industry really need the testing services of companies like Aehr Test Systems. This means Aehr Test Systems stock could soar on explosive demand growth for its critical systems testing hardware and software.

Aehr Test Systems Stock

Aehr Test Systems stock looks like a good setup on a Symmetrical Triangle pattern. The Effective Volume study shows large players volume is rapidly rising. The Twiggs Money Flow confirms the stock is under accumulation. We also had a bullish Pocket Pivot signal on Friday, July 28, 2017.

Prices have been consolidating lately and there is a resistance zone just above the current price starting at 4.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 4.04, a stop order could be placed below this zone.

Aehr Test Systems stock was found using my GST Positive Divergence screener as talked about here.

MACOM Technology Solutions Momentum Squeeze On Institutional Buying

The stock of Macom Technology Solutions has set up into a momentum squeeze on institutional traders increasing their long positions. Institutional trader positions have increased by a big 11.75% over the last 3 months.

A few of the more noteworthy Q1 institutional transactions were:

KBC Group NV bought a new position in the company during the first quarter, according to its most recent filing with the SEC. The firm bought 9,211 shares of the semiconductor company’s stock, valued at approximately $445,000. FMR LLC increased its position by 182.8% in the fourth quarter. FMR LLC now owns 818,493 shares of the semiconductor company’s stock valued at $37,880,000. Pinnacle Associates Ltd. acquired a new stake in MACOM Technology Solutions during the first quarter valued at approximately $16,539,000. Wells Fargo & Company MN boosted its stake in the company by 565.9% in the first quarter. Wells Fargo & Company MN now owns 318,562 shares of the semiconductor company’s stock valued at $15,387,000.

MACOM Technology Solutions Stock Chart

The Twiggs Money Flow went bearish on June 14,2017, but now looks like it’s ready to round up as traders accumulate off the 50 SMA line.

MACOM Technology Solutions presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced forming a momentum squeeze.

There is a resistance zone just above the current price starting at 60.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 54.84, a stop order could be placed below this zone.

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Micron Technology Bullish Call Spread Ahead of Earnings

Hearing that MKM Partners suggested that Micron Technology investors enter a bullish call spread of the October $33 and $38 calls ahead of earnings in two weeks.

Micron Technology Call Spread

That reason that MKM Partners is recommending this strategy is that they believe Micron’s stock price will rise ahead of the company’s earnings report in two weeks.

Specifically, MKM Partners is recommending buying October $33 calls, while selling October $38 calls.

Micron shows a strong growth in Earnings Per Share. EPS is up 923% quarter-over-quarter which is awesome. Revenue has been growing by about 8.2% on average over the past 5 years.

Micron is a global leader in the semiconductor industry. For more than 35 years, the company has
dedicated itself to collaborating with engineers to drive innovation and transform what’s possible. Micron has 26,000 patents and 30,000 employees in 18 countries.