SOXS (3x bearish/short semiconductor sector ETF) offers an objective long entry around current levels (13.97) on today’s breakdown below major support on SOXX. I have opted to use the 3x leveraged SOXS as the official proxy for shorting the semiconductor sector in lieu of SOXX as if my expectation of a relatively swift & unidirectional selloff in the semi occurs in the coming weeks, the 300% leverage can actually work to one’s advantage, instead of against them.
SOXS daily Oct 23rd
The price targets for this trade are T1 at 16.53 & T2 at 23.80, both of which are subject to revision based on where SOXX is trading at the time (I will expand on that in a follow-up post). The maximum suggested stop is any move below 11.60 with a suggested beta-adjusted position size of 0.35, in order to account for the 3x leverage.
SOXX daily 2 Oct 23rd
For those that prefer to short SOXX, my price targets are shown on the daily chart above. I will most likely adjust the price targets on SOXS to align with these targets if/when they approach those levels as those are the levels that I expect a reaction in the semiconductor (upon the initial tags of T1 & T2 on SOXX).