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SOXS

SOX: Semiconductors may experience sell off soonWhile most people consider the semiconductor shortage to be bullish for semiconductor stocks I believe there is a serious case for a bear scenario. With the supply chain this heavily disrupted it is possible that while margin will be high on individual sales the number of sales is lower considering the variance in the types of semiconductors that need to be purchased for different products as well as the increased competition that is going to exist between Semiconductor Manufacturers. To profit off of this thesis I will be purchasing SOXS Periodically until I believe the move may complete. I am viewing this as an ABC correction on SOX. High valuations need to be supported by revenue and next earnings will betray the earlier semiconductor stock boom that was spurred on by Covid.
AMEX:SOXSLong
by myceliium
SOXX ShortSOXX is on the verge of a major breakdown, much like the one that lead to the melt down in Q4 of last year (followed by a ~20% drop after the trend break). However, we are not there yet because we are resting on support. The main, long term pattern we are looking at is a bearish rising wedge. Within the wedge we also have a symmetrical triangle which was entered from above, which suggests - as a continuation pattern - that price will follow lower. Keep in mind there is also another green trend line underneath which acts as a type of extra confirmation which must be broken for a definitive sell signal. A sell signal will be confirmed once we have a daily close below those trends, and especially if we have a weekly close below. Given how resilient this market has been, it would not be unreasonable for SOXX to put in a marginal new high first, thus extending the negative divergences on the PPO and RSI before the grand finale to the downside. Since we are very oversold on the 1-hour candlesticks and have positive divergences building on the market futures (ES and NQ), we can at least expect a small thrust up to the resistance shown as the double green lines above. Either way, once we crack below, there will without question be volatility, maybe even a back-test of the broken wedge pattern, but ultimately I can foresee SOXX going down to the second yellow uptrend shown below. The lower yellow uptrend is one of the two supports I have drawn from the November 2008 lows, following the Great Recession. Both have acted as support and resistance many times, thus showing that both are important levels that price will abide by. Such a move would equate roughly to a 25% drop, depending from which point we break down from. For this trade, we will be using SOXS, a triple levered inverse ETF of SOXX. I would avoid the use of put options since that involves gauging the time frame in which this move occurs which only adds even more difficulty to an already complex setup. A suggested stop loss would be anywhere just above the top of the daily candle which confirms the initial break down.
NASDAQ:SOXXShort
by BigMouse777
1
Swing trade YANGAfter Trumps tweet of raising tariffs, China's market is temporarily crashing. YANG is a China Direxion Bear X3 ETF. The index is having great gains. I expect it to reverse on Friday 10th / Monday 13th. Analysts still expect the trade to happen between China and USA. At this point consider buying YINN (China Bull X3 ETF). Other X3 ETF's to consider: SOXS (Semiconductors Direxion Bear) is on the same path. --------------------------------------------------------------------- Information An exchange-traded fund, or ETF, is an investment product representing a basket of securities that track an index such as the Standard & Poor's 500 Index. ETFs, which are available to individual investors only through brokers and advisers, trade like stocks on an exchange. Direxion Shares and Ultra ProShares are leveraged Exchange-Traded Funds (ETFs) designed to seek daily investment results, before fees and expenses, of 300% / 3x of the performance (or 300% / 3x of the inverse of the performance, in the case of a bear fund), of the benchmark index that they track. There is no guarantee that the funds will achieve their objective. --------------------------------------------------------------------- Caution There can be A LOT of volatility trading these Indexes. ALWAYS use stop-loss orders, as well as price target sell-offs. Happy trading! PS: For a list of all 3X ETF's. Go to: 3XETF dot-com
AMEX:YANGLong
by dorfmanmaster
Semiconductors - almost to the 5th wave down. LOAD UP on SOXSSemis swinging nicely in this range bound pitchfork. Volatility increase near the outer bounds, and we are almost there. Clear 5 wave count to conclude at the long term bullish trend line. This is my short term trade to the downside using SOXS 3x bear, and will reevaluate my next move when this target is hit. There's still a long term bull target on most indexes (including Semis) that has not been hit. I'm keeping that in the back of my mind, but for now staying bearish on this move. Ignore the time based fib if you want. I rarely use it, but it helps fit my narrative for now.
NASDAQ:SOXShort
by warrenbudget
Semiconductors hit a weekly double at the 2000 crash level.Semiconductors hit a weekly double top at the same level as the 2000 dotcom crash. I went long SOXS (3x semiconductor bear) and long SDOW (DJI 3x bear) in my 401k right before the market closed yesterday. I got lucky as a bought these right before the Cohn resignation announcement which tanked the futures market. I had also gone short 2 DJI futures. I already closed that trade last night for a solid profit after the big Cohn drop. SSG is a low volume 2x semiconductor bear etf which I would avoid due to low liquidity. I wish there was a 1x bear etf to avoid the daily rebalancing problem. My SDOW and SOXS remain open in my 401k.
TVC:SOXShort
by haug01