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SOXL (Semi-conductor short trade) T1 hit for 14.3% Gain

The SOXL (3x Bullish Semiconductor ETF) active short trade has hit the first target, T1 at 23.44, for a 14.3% gain. SOXL was added as a short trade back on Oct 21st. Shorting the 3x leveraged long ETF was chosen as the preferred trading proxy in order to take advantage of not only the expected drop in the semi-conductor sector but the price decay suffered from holding leveraged ETFs over time. Original & updated 2-day period charts below:

While the semiconductors are currently trading around support & the odds for a reaction are elevated at this time, I plan to sit tight on my SOXL short, riding out any potential counter-trend bounces while holding out for T2, the final price target at 18.14. At this point, the suggested stop for the SOXL short will be lowered from any move over 31.00 to a daily close above 29.20.

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Jan 6, 2016 2:27pm|Categories: Completed Trades - Short|Tags: , |Comments Off on SOXL (Semi-conductor short trade) T1 hit for 14.3% Gain