Here, Semi Semi

For those of you itching to play the semis for the medium term, a few are starting to form above their 200-day moving averages. I'm wary of this area because so many components are under tons of overhead resistance. One possibility, if it can work a bit more on completing a base, is Axcelis Technologies.

Axcelis (ACLS | Quote | Chart | News | PowerRating) is a producer of ion implantation, dry strip and photostabilization equipment used in the fabrication of semiconductors. The chip equipment maker came public on July 11, 2000 in an initial public offering of 15.5 million shares of common stock priced at $22 per share. 

For my approach to playing semiconductor recoveries, see my lesson, Selecting And Trading Turnaround Stocks. 

Allied Waste Industries (AW | Quote | Chart | News | PowerRating) is emerging from a long base. Midway Games (MWY | Quote | Chart | News | PowerRating) is testifying to the strength in entertainment stocks.

Among the exchange-traded funds, the techs led. The Semiconductor HOLDR (SMH | Quote | Chart | News | PowerRating) jumped 7.6%, the day's biggest gain among the ETFs. The Nasdaq 100 Tracking Stock (QQQ | Quote | Chart | News | PowerRating) rose 4.5%, the Dow Jones Technology iShares (IYW | Quote | Chart | News | PowerRating) 3.7%, the Broadband HOLDR (BDH | Quote | Chart | News | PowerRating) 3.5%, the Software HOLDR (SWH | Quote | Chart | News | PowerRating) 3.2%, the Technology SPDR (XLK | Quote | Chart | News | PowerRating) 2.9%, the Internet Infrastructure HOLDR (IIH | Quote | Chart | News | PowerRating) 2.1%.

The Oil Services HOLDR (OIH | Quote | Chart | News | PowerRating) lost 2.4%, the Dow Jones Utilities iShares (IDU | Quote | Chart | News | PowerRating) 1.4%, the Energy SPDR (XLE | Quote | Chart | News | PowerRating) 1.1%, the Dow Jones Energy iShares (IYE | Quote | Chart | News | PowerRating) 1.1%.

All stocks, of course, are risky. In any new trade, reduce your risk by limiting your position size and setting a protective price stop where you will sell your new buy or cover your short in case the market turns against you. For an introduction to combining price stops with position sizing, see my lesson, Risky Business.