Lucky Number Seven and Semiconductor Momentum

Nasdaq Composite Seven Days UP & > 7.00% Rate of Change

Since 1976, when the Nasdaq Composite registers SEVEN consecutive daily gains and records a SEVEN-day Rate of Change (ROC) surpassing SEVEN percent (7%), it signals a favorable outlook for equity investors. This unusual phenomenon results in a skewed positive distribution of returns for the Nasdaq Composite, the SPX and the Russell 2000. Continuing the theme of SEVEN, the historical returns for Semiconductors show six-month average gains of approximately +25% characterized by skewed distribution of SEVEN UP/ zero down.