SOXX (PHLX SOX Semiconductor Sector ETF) offers an objective, yet somewhat aggressive short entry on this rally into price resistance + the 200-day EMA & will be added as an official short trade around current levels. 60-minute & daily charts below:
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- SOXX 60-min Jan 24th
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- SOXX daily Jan 24th
The current price targets for this trade are T1 at 164.54 and T2 at 161.95 with the potential for additional targets to be added, depending on how the charts develop going forward. The suggested stop is any move above 174.90 with a suggested beta-adjusted position size of 1.0.
SOXS (3x bearish/short semiconductor ETF) could also be used as a proxy for shorting the PHLX SOX semiconductor index although one would buy, or go long, SOXS while reducing their position size by 1/3rd to account for the 300% leverage.
@rsotc – Does SMH also offer a similar entry?
Yes. SMH has also made an extended run smack into solid price resistance which also aligns with a Fibonacci cluster, although a little shy of its 200-day EMA. Swing target would be 89.20ish & 88.50ish. Best of luck if you take it.
intel ER today
My guess is that INTC pops to 50.70 in the AH session following earnings followed by a reversal tonight or tomorrow to close the day red. Just a guess, not trading INTC, less risk trading ETFs during the thick of earnings season.