SOXS (and SOXX) have yet to break out (down) but with both SPY & QQQ breaking down impulsively today, it is most likely only a matter of time & as such, SOXS will be added as an Active Trade around current levels. The previous notes, including price targets for SOXS, can be viewed here. The suggested stop for this trade will be 31.80 with a suggested beta-adjusted position size of 0.35.
SOXS daily Oct 2nd
While we current have impulsive breakdowns on the major stock indexes as well as the tech sector (XLK) on the daily chart & so far on the weekly charts, the possibility of a stick save before today’s daily candles & the weekly candles (which are finalized at 4 pm on Friday) can’t be ruled out. As such, I continue to prefer a “soft” entry (i.e.- gradual scale-in) to shorts on the semiconductor & tech sector as well as the broad market while bringing those positions to a full allocation (not your total portfolio but rather how much short exposure you plan to allocate to the stock market & various sectors) once we have confirmed sell signals on the weekly charts.