Carter Worth Announces Chip Stocks Ready to Disappoint

The Philadelphia Stock Exchange Semiconductor Index has finally caught up to the S&P 500 Information Technology Sector. Carter Worth noticed this. Carter Worth wants you to know he noticed this. The chips broke out while the rest of tech shows signs of topping out, which sounds impressive until you remember that technical analysis is just connecting dots on a chart like a particularly confident child at Denny's.

The semiconductor index recouped all its relative losses. Every single one. Do you know what that means? It means the line went back up to where it was before. Revolutionary stuff. Worth looked at two lines on a screen and determined that one line doing better than another line means something about the future, which is the same methodology your uncle uses to pick lottery numbers based on his birthday.

Retail traders are currently scrambling to understand what "relative losses" means because they bought NVDA at the top after watching a YouTube video titled "SEMICONDUCTORS WILL MAKE YOU RICH (not clickbait)." They learned that semiconductors go in computers. They learned that computers are the future. They did not learn that buying after a 400% run-up is called being the sucker at the poker table.

The rest of tech showing signs of topping out means absolutely nothing. Signs of topping out. What signs? A shooting star candlestick pattern? A bearish divergence in the RSI? These are the financial equivalent of reading tea leaves, except tea leaves don't have a Bloomberg terminal and a primetime slot. Worth saw some squiggly lines flatten a bit and declared an inflection point, which is what technical analysts do instead of having a real job.

The Philadelphia Stock Exchange Semiconductor Index spent months underperforming and has now caught up, which means it's either ready to lead or ready to join everything else in disappointing the people who just discovered what a semiconductor is. Carter Worth has identified this pivotal moment using the same charts available to every person with an internet connection and the belief that past performance somehow matters. Your neighbor's kid could draw the same conclusion with a crayon, but he doesn't have a tie and a television appearance, so nobody's listening to him either.

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