I have received a couple of questions about the semiconductor sector. The chart below shows what I am watching on the Semiconductor Holdrs Trust (SMH)...

Created with SuperCharts by Omega Research

Here we can see a couple of trends that are highlighted by channels. First is a strong uptrend that starts in late-2002 and was violated in March. This gave me enough data to draw the downtrending channel that still contains the action. A resistance zone is shown near 32.50 which marks the recent peak and coincides with the upper edge of the channel.

The group is catching a bid this morning in part due to comments from TXN and others. I will be watching how the group reacts as it approaches this resistance zone...

The CPI rose 0.2 percent while the core (which excludes food and energy prices) rose 0.3 percent. Housing starts fell 6 percent. Stock futures ticked down slightly on the news but are still holding the bulk of their gains...

Yesterday I mentioned RSA Security (RSAS) and showed a chart highlighting resistance just above 21. The stock rallied into the close to push right into this zone. The pre-open activity (see usual caveat below) shows the stock bid up above 22. Given the sentiment profile, this may be one to keep an eye on...

Yesterday I noted the 40 level on Taser International (TASR). The pre-open activity has the stock trading just shy of 42. (Insert usual caveats about this being early and a lot can change by the open.) As I alluded to yesterday, 88 percent of the stock's float is sold short and just one analyst tracked by Zacks even follows the stock (with a "hold" rating)...

Below are some of the earnings reports that have come out this morning...

• Ameritrade (AMTD) - beat estimates, bid higher
• CDW Corp (CDWC) - beat estimates, bid higher
• EMC Corp (EMC) - matched estimates
• Ford Motor (F) - beat estimates, raised guidance
• Altria (MO) - beat estimates
• TASER Intl (TASR) - beat estimates, raised guidance, bid higher