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SOXL

If you like Sushi you need to read this!Betting against the market has increased significantly! In the past 2-4 weeks the volume of the 4 inverse ETFs has increased significantly (+2x)! This means lower prices are more likely! What could happen in the next 3 weeks if prices pass the Red lines? Market Reversals and the Sushi Roll Technique: In his book "The Logical Trader," Mark Fisher discusses techniques for identifying potential market tops and bottoms. Capturing trending movements in a stock or other type of asset can be lucrative. However, getting caught in a reversal is what most traders who pursue trendings stock fear. A reversal is anytime the trend direction of a stock or other type of asset changes. Being able to spot the potential of a reversal signals to a trader that they should consider exiting their trade when conditions no longer look favorable. Reversal signals can also be used to trigger new trades, since the reversal may cause a new trend to start. One technique that Fisher discusses is called the "sushi roll." While it has nothing to do with food..! The "sushi roll" is a technical pattern that can be used as an early warning system to identify potential changes in the market direction of a stock. When the sushi roll pattern emerges in a downtrend, it alerts traders to a potential opportunity to buy a short position, or get out of a short position. When the sushi roll pattern emerges in an uptrend, it alerts traders to a potential opportunity to sell a long position, or buy a short position. A test was conducted using the sushi roll reversal method versus a traditional buy-and-hold strategy in executing trades on the Nasdaq Composite during a 14-year period; sushi roll reversal method returns were 29.31%, while buy-and-hold returned 10.66%. Sushi Roll Reversal Pattern Fisher defines the sushi roll reversal pattern as a period of 10 bars in which the first five (inside bars) are confined within a narrow range of highs and lows and the second five (outside bars) engulf the first five with both a higher high and lower low.3 The pattern is similar to a bearish or bullish engulfing pattern, except that instead of a pattern of two single bars, it is composed of multiple bars. Best, Moshkelgosha DISCLAIMER I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Reference Article: www.investopedia.com
AMEX:SOXS
by Moshkelgosha
3
SMH about to breakoutSMH (the Geek) was resting in the small 4 day week moving laterally but was ready to breakdown on Thursday. But the jobs numbers on Friday being moderately light vs expectations made one more month of positive news for the market signaling "transitory" inflation. That was the turning point as mentioned in my last weeks report. An engulfing candle on Friday and an uptrend MACD makes this extremely bullish. After Fridays action, I see Geek moving higher as 3/4 of the stocks in the group got pummeled way under 21 day ema. This put those stocks this coming week trading above 8 day ema at least. Its possible that it can rest here for a couple of days as well.
NASDAQ:SMHLong
by CTRLZEEE
2
SOX, SMH needs to hold hereTheres a saying that SEMIs lead the market. $SMH finally broke an upper band trendline that took alot of work to do because of very little volume. Its tired and wants to rest. This is an important test but bids need to come back. Will June be the month when buyers pile back in? My gut tells me we hit 252 this week then break down again or at least stay above the band. Stocks that had great earnings but got slaughtered will do well. $SMH will be range bound till July earnings.
NASDAQ:SMH
by CTRLZEEE
SQ classic ABCD pattern with strong earnings will test 275 againSQ has been hammered along with the rest of tech/semi/fintech for the past 2 weeks. With IWM classic bounce off upward trend line with volume and SOXX reversal due to oversold conditions, I can see tech and semi bounce this week for a bull run back to highs. Energy money will flow back to tech while it rests due to overbought conditions and job numbers being abysmal this past Friday. Be cautious of Dow and S&P, it needs to rest but not get sold to maintain uptrend.
NYSE:XYZ
by CTRLZEEE
SOXL 3X Semi - Unusual Volume $2M+ traded for $42 strikeAMEX:SOXL $2M+ in premium traded for $42 strike calls for Friday May 21th 2021 expiration traded today. Unusual Options Volume Activity for $80 calls about 9000+ contracts traded through out the day (Above Open interest of only 1162) from $2.10 to $2.50 Various semi conductor stock earnings coming up soon. Bounced off 50 EMA Today on the daily showing downside support. CCI is also trending up going from bearish to bullish after being sold through out the day. Nice hammer on the 4H chart A Months time on these options I would recommend a vertical spread to keep theta at bay. Wait for confirmation of break of the $40.00 level for upward trend and possibly a close above this level to start a position. Enter using $40 or $41 calls around trigger as theta burn will be less once ITM. Or consider a vertical. Exercise caution when entering 3X ETF as they tend to move rapidly to the down side on any pullback. Support 50 EMA $38.55 Trigger $40.00 Target 41.44, 42.44, stretch target of 43.45 SL close below 50 EMA Follow more unusual activity signup for a free trial using my referral link marketaction.live Please let me know in the comment if you find this useful.
AMEX:SOXLLong
by marketaction_live
1