Site icon Banyan Hill Publishing

Semiconductors Rally on U.S.-China Truce: Here’s 1 Bullish Play

Semiconductors being created in a lab

Story Highlights


Last week, the U.S. and China reached a historic agreement in the yearslong trade war.

President Trump signed a deal that opens up Chinese markets to more American investment and increases China’s purchase of U.S. goods.

This agreement is bullish for the entire stock market. But there’s one sector that’s already climbing higher on the news: semiconductor stocks. And it’s poised to make investors like you even more money in the weeks ahead.

That’s the new battleground for the tech industry. Semiconductor firms make the components that help power everything from 5G technology to self-driving cars.

The sector was hit hard by the trade war.

Xilinx (Nasdaq: XLNX), a major semiconductor stock, saw its shares fall nearly 40% over the last two years.

But with renewed optimism powering the markets, investors are getting excited about this stock’s prospects again.

And shares are already on the rise.

What the Trade Deal Means for Xilinx

As you can see in the chart below, shares doubled in value from 2018 to 2019 before the sharp decline. I want to see if shares can double once again.

Xilinx Stock Rallied — Then Plunged — Since May 2018



In my latest episode of Bank It or Tank It, I explain what the phase 1 trade deal means for the semiconductor space in 2020. I’ll tell you whether Xilinx is a stock to bank on moving higher … or one to avoid at all costs.

Be sure to read on to get details about the free options-trading course I’m unveiling tomorrow!

The Stock Market Takes a Break

The trade deal grants us one huge takeaway:

President Trump is focused on his reelection campaign.

After playing hardball with China over the past two years, he’s accomplished a goal long promised to his supporters. We’re seeing a much-needed pause in the tariff dispute.

Investors can once again focus on the fundamental value in stocks instead of all the noise in the markets.

And that renewed optimism will continue fueling rallies in many sectors hit hardest by the trade war. For a value play like Xilinx, it could mean another huge surge in 2020.

Stay Tuned for My FREE Options Course!

Now, the stock market can be tricky to navigate.

That’s why I focus on short-term trends to capitalize on more predictable price moves.

But simply buying a stock doesn’t generate enough reward in the short term.

That’s why I prefer options on stocks. And now I want to show you my proven method.

I just put the final touches on a free course I want to share with all of you. It helps you learn how to get rich by using one bullish options strategy. It’s already handed readers consistent opportunities month over month — and year over year!

It doesn’t matter what your experience level is. I’ll walk you through three easy lessons. I can show you how to always pick the best option — and how to beat the market in the process!

Tomorrow, I’ll send you an invite to discover my proven method for beating the market. Keep a close watch on your inbox so that you can be the first to start winning with options trading!

Regards,

Chad Shoop, CMT

Editor, Quick Hit Profits

Exit mobile version