With that being said, and knowing Commodities have been in a Secular bull during the last 8yrs, we can assume that we are in the middle of the Secular bull for commodities but more importantly at the beginning of a new secular bull for Semiconductors. See chart below.
We can see that the PHLX SEMICONDUCTOR SECTOR INDEX (^SOXX) is showing the best relative strength against its peers on a 3m, 6m and 1yr timeframe - except for a 6m timeframe - the AMEX GOLD BUGS INDEX (^HUI) leads at that time interval. But if you look closer, Semiconductors are even leading the Dow Jones-AIG Commodity Index (^DJC). Gold stocks and Semiconductor related stocks should outperform, near term and long term, and have been outperforming for the last year. The S&P BANKING INDEX has lagged everything.
The number of new stocks hitting new lows continues to show signs of strength. Breadth indicators continue to favor a case for a bottom, albeit a long and uneven trudging of one. The Nasdaq is showing relative strength still - and if you notice, its New High/New Low chart exemplifies what should be happening when a bottom occurs. If you look at the NYSE stats, the data is less defined and unclear - that's why the Nasdaq will outperform near term and long term.
NASDAQ LEADS MAJOR INDEXES
Looking at performance charts: Nasdaq has started to outperformed on a 3m timeframe. This is important since the major part of the crash, and leading up to the 6500 area support is about 3 months - so far, NASDAQ has held up the best.
The major thesis here is that a new secular growth story is emerging. A growth story that will heal all of the cuts, bruises, and breaks that the Nasdaq left us in 2000. One should now be long technology.
STOCKS: MICRON TECHNOLOGY(NYSE: MU) TAIWAN SEMICOND ADS(NYSE: TSM)
TEXAS INSTRUMENTS(NYSE: TXN) STMICROELECTRONICS(NYSE: STM) LSI CORPORATION(NYSE: LSI)MRVL Marvell Technology Group, Ltd.