With QQQ & SPY still holding above last Monday’s lows and even the top of Monday’s gaps (which I had stated earlier was key support that needed to be taken out to spark the next wave of impulsive selling), I could be jumping the gun on this one but based on my read on the charts as well as the recent price action over the past several trading sessions, I have decided to add SOXS (3x short semiconductor sector ETF) as an official Short Swing Trade around current levels. One could also wait for a solid break below the tops of Monday’s gaps in SPY & QQQ (around 288 & 183.50ish) before shorting the semis which would provide a higher-probability entry albeit, most likely at a less favorable price.

SOXS daily Aug 12th

SOXS daily Aug 12th

The price targets are the same on the last update on SOXS last week with T1 at 53.79, T2 at 59.31 & T3 at 67.10./ However, I have raised the suggested stop to any move below 44.90 based on the fact that SOXS has risen since then. The suggested beta-adjusted position size for this trade is 0.35.

Note: One would buy or go long SOXS in order to short the semiconductors. However, as a short on the semis, this trade will be assigned to the Active Short Trades category. One could also opt to short a typical (0.9 to 1.o BAPS) of SOXX in lieu of buying SOXS.

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