The SOXS (3x bearish/short semiconductor sector ETF) has hit the first price target, T1 at 16.53 for a 15.5% profit (5.4% beta-adjusted gain). As is often the case when a price target is an initial hit, SOXS nearly immediately reversed within mere basis points after hitting T1, pulling back over 5.3% in the final 15-minutes of trading. Original & updated daily charts below:
Likewise, SOXX (1x/non-leveraged semiconductor ETF), which was provided as an alternative proxy for a short trade on the semiconductor sector also hit the first target of 152.08 nearly to the button, immediately followed by a reversal & sharp 2% rally into the close. Previous & updated daily charts:
While today’s reactions off those price targets may or may not have more follow-through this week, the next sell signal for the semis will come on an impulsive break above today’s high on SOXS/today’s low of SOXX. T2 remains the final target at this time although it would be prudent to raise stops on SOXS to protect profits at this point.