SOXL trade ideas
direxion heiken ashi system 200% compounded simple trading 1 yrthis is for education purposes not a recommendation
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you are respinsible for any decisions you make
Semiconductors Be AwareAnother ascending wedge has appeared. We are currently awaiting a small pull back before a final push up but this does not look like its getting to $200 like previously thought. Bearish headwinds are appearing and larger more long-term ascending wedges are appearing in the market.
Semiconductors at overhead resistanceThis was one of my more prodigious predictions - a declining wedge inside a consolidating triangle. It has jumped today to the upper limit of the consolidating pattern, but where to now? The limits and lines have stayed consistent so crosing and closing above or below them should tell you which way the trade is headed.
SOXL Sell the Bear Market RallyNotice my custom MACD line crossing below both of its signal lines. Before, when It crossed above them, the price went up and there was a normal MACD cross there shortly after. I think now the price will go down to retest the lows of March, and possibly even go lower.
SOXL - BTFD Thank You CoronavirusMy custom "Fast MACD" (Yellow Line) line crossed above its two signal lines. I think the regular MACD (Aqua Line)crosses above its signal line soon as well. At the time of that cross, we should be seeing some recovery from this coronavirus in the markets. Semiconductor companies still have incredibly strong growth.
A scaled entry plan for SOXLOne of the best long-term performers in the stock market is the semiconductor sector. With a strong likelihood that AI will change the world in the next 10-20 years and disrupt every other industry, there are big profits to be made in semiconductor companies that are heavily invested in AI research and provide the processors to power it.
That said, the current price point on SOXL is pretty high, so it makes sense to look for a lower entry. With the market (and especially the Nasdaq) turning downward this week on China trade war news, I've developed a scaled entry plan for SOXL. There are four entry points: the recent highs around 198, the high-volume node at 159, and the recent lows near 131 and 90. Normally I triple my position at each level, but I doubt we'll hit the bottom two targets on the current trade war news, so I'm weighting my entries a little more toward the two upper ones. I already made my first entry this morning near 198.
SOXL trend lines to watchSemiconductors have been in a fairly strong uptrend and broke above their parallel channel yesterday, and they could cycle up again later today. However, watch out for the possibility of a breach of the lower trend line, especially if Taiwan Semiconductors earnings are bad tomorrow.
Trading the range on SOXLHere's how I'm trading SOXL right now. I buy when it gets below the red channel and sell when it gets above the red channel. A breach of either of the blue trend lines would indicate a breakout from the current trading range. So I'm keeping a stop loss just below the lower blue trend line.
Today I exited at 170, and my next buy order is at 152.50. I hope to see that Monday, although with trade talks coming up in mid-October, we could easily see the uptrend continue.
In my opinion, semiconductors are overvalued right now. Given the weakness of their earnings, they haven't fallen as far as they should. But if we successfully sign a trade deal, they will explode to new highs regardless of their earnings. So keep an eye out for China news.
Short SOXLA potential reality. But I'll be watching the indicators and switch to a long position accordingly.
Short SOXLThe indicators are telling a clearer story every day. I could be wrong, but I'm still holding my short position. Of course there's always a chance of random news and I am holding some inverse positions to absorb any shocks.
