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Marvell Tech Breaks Out To New High With The Semiconductor ETF

Mar. 09, 2018 5:03 PM ETMarvell Technology, Inc. (MRVL)
Richard Suttmeier profile picture
Richard Suttmeier


  • Technology is the best performing sector led by semiconductors.
  • The iShares PHLX Semiconductor ETF has been setting all-time highs almost daily and now Marvell Tech has joined the momentum party.
  • Since Marvel trades on technical momentum investors should ignore its elevated P/E ratio of 41.06 and puny dividend yield of 0.99%.

Semiconductor maker Marvell Technology Group (NASDAQ:MRVL) beat earnings estimates when the company reported results after the close on Thursday, March 8. The after-hours reaction was muted but positive results from most product segments caused the stock to breakout above my monthly pivot of $24.36 shortly after Friday's open of $24.21.

Friday morning's employment report showing that the nonfarm payrolls rose by 313,000 was a game-changer that led the tech-heavy Nasdaq Composite to a new all-time intraday high of 7,511 as of 11:00 AM. In a growing economy semiconductors lead as almost every product we buy contains computer chips, from our automobiles to our smallest handheld devices. An improving economy was the catalyst for the new highs for the iShares PHLX Semiconductor ETF (SOXX) and Marvell Tech.

Here's the daily chart for the SOXX

Daily Chart For The Semiconductor ETFCourtesy of MetaStock Xenith

The SOXX was trading at $193.73 this morning and its all-time high as of 11:00 AM is $194.09. The ETF has a gain of 14.1% year to date and is up 18.7% from its correction low of $163.18 set on Feb 9. The ETF has been above its 50-day simple moving average since Feb. 14 providing the guidance to buy the SOXX at my quarterly pivot of $175.99. My monthly risky level is above the chart at $198.94, which is the level at which to reduce holdings.

The daily chart for Marvell

The Daily Chart For Marvell TechCourtesy of MetaStock Xenith

Marvell was trading at $24.73 this morning and its all-time high as of 11:00 AM is $25.18. The stock has a gain of 15.2% year to date and is up 21.4% from its correction low of $20.37 set on Feb 8.

Marvell has been above a ‘golden cross’ since April 20, 2016, which is not shown on the daily chart. On that date the stock could have

This article was written by

Richard Suttmeier profile picture
I am the Founder & CEO at Global Market Consultants, Ltd. I consider myself as a Financial Engineer with an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. In 1972 I began my career in the financial services industry trading U.S. Treasury securities in the primary dealer community. I became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gave me the insights to be an expert on monetary policy, which I feature in my newsletters, and market commentary. I formed Global Market Consultants Ltd at the end of 1988 and expanded on my analysis to include proprietary analytics. While operating Global Market Consultants I was the U.S. Treasury Strategist at Smith Barney 1991 through 1995, was Chief Financial Strategist at William R. Hough in St. Petersburg, Florida 1997 through 1999, and was Chief Market Strategist at Joseph Stevens 1999 into 2008. I began covering U.S. equities in 1997 and began to use ValuEngine as my stock screening tool in 2002 before joining them as Chief Market Strategist between September 2008 and November 2014. I was the Chief Market Strategist at Niagara International Capital Limited between December 2009 and December 2014. In 2005 through 2007 I wrote columns on RealMoney.com and authored TheStreet.com Technology Report. My unique coverage called for the housing bubble to pop in 2005 and for regional banks to collapse in 2006 and early-2007. This is when my proprietary analytics became known as value levels at which to buy on weakness and risky levels at which to sell on strength. I became an Expert Contributor for TheStreet.com in April 2012 and currently write one or two stories a day covering subjects such as: The housing market, community and regional banks, momentum stocks, earnings profiles both before companies report quarterly results and provide scorecards after reporting results. Many of my stories we include moving averages, momentum readings, analysts’ earnings estimates, and value levels and risky levels. Over the years I made frequent appearances on financial TV beginning in 1993 on CNBC covering the U.S. Treasury auctions and as a substitute for John Murphy on his segment called ‘Tech Talk’. I also occasionally appeared on CNN and Bloomberg. On almost every holiday I appeared for an hour covering stocks on a call-in / email-the-expert ‘Talking Stocks’ show on CNNfn. In 2002 I had my own show on Yahoo Finance TV called, ‘Traders’ Club with Richard Suttmeier’. When Fox Business began in late-2007 I was a frequent guest on ‘Money for Breakfast’. I also made appearances on Reuters TV, Yahoo Finance Breakout and BNN in Toronto. In recent years I shifted my focus to making presentations to various investor groups such as: MBA students at the University of Florida and South Florida, The American Association of Individual Investors, Wells Fargo Advisors, The Executive Form at the National Arts Club in NYC, Investors Roundtable of Wilmington NC, The Market Technicians Association, The Information Management Network when they cover Florida Banks in Ft Lauderdale, and the University of Tampa Investment Club. I was president of the Society for the Investigation of Recurring Events in NYC from 2000 into 2009. My background began on Long Island, New York. I graduated from Bay Shore High School in 1962, and was a member of the Honor Society, Golf Team, Math Team and Band. I graduated from Georgia Tech in Atlanta with a Bachelor of Industrial Engineering Degree in 1966, and was a member of Chi Phi Fraternity, the freshmen Golf Team, and was the captain of the Bowling team. I won the South East Regional Bowling Tournament in 1964 and won the National Intercollegiate Bowling Championship in the Doubles Event that same year. I graduated from Brooklyn Poly in 1970 with a Master of Science in Operations Research, Systems Analysis. My first job out of Georgia Tech was with Grumman Aerospace on Long Island 1966 through 1970 with project assignments on the Lunar Module and F-14 Tomcat Fighter Jet contract proposal. I was with Bank of New York in 1971, as the Senior Systems Analyst for computer applications for the Bank’s International Division. When I shifted my to Wall Street In 1972 I became a U.S. Government securities trader at Briggs Schaedle, a primary dealer where my father was Vice Chairman and my brother was Sales Manager. In 1977 I joined Loab Rhodes as a U.S. Treasury trader. Then my career advanced as noted above. I have been married to Linda since June 1969 and we are the parents of Stephen and Jason Suttmeier. Stephen has been married to Jennifer since 2004 and we have a granddaughter Emily and a grandson Robert. We have been living in Land O’ Lakes, Florida with Jason and his partner James since June 2009.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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