This video provides analysis of the semiconductor sector via $SOXX (PHLX Semiconductor Index) & the 3 major semiconductor ETFs: SOXX, SMH & XSD. Also discussed are the pros & cons of trading the 3x leveraged ETFs, including SOXL & SOXS. The factors affecting the performance of leveraged ETFs when held for extended periods of time, which are often detrimental but can be very advantageous at times, apply not only to SOXS & SOXL but all leveraged ETFs in general. Price targets & trade entry points & key developments to watch for are covered as well.
The following notes & chart are an update to the SOXX SOXS swing trade idea. Please login or sign-up for your 3-week trial to view.
March 1st: An odd title for a stock market update in mid-April but in reviewing the charts to compose an update or weekly outlook for the market, I kept coming back to the same conclusion; Not a thing has changed in the charts or my expectation for where the US stock market is headed since the very day it peaked (March 1st). Although more downside is needed to reach the commonly used definition of "a 10% drop from the highs", by nearly every metric that I monitor, the correction not only appears to be underway since then, with the small caps [...]
The following notes & chart are an update to the SOXX / SOXL (semiconductor ETFs) trade idea on Right Side Of The Chart.
The following notes & charts outline the entry criterion, price targets, suggested stop-loss and the suggested beta-adjustedment for a swing trade on SOXX or SOXS (semiconductor sector ETFs)
I've clearly stated my expectation for a correction in the semis recently & just wanted to share some thoughts on how to position for a correction in the semis, for those that share my outlook for the sector. In doing so, I also wanted to address the advantages & disadvantages of trading leverage ETFs in lieu of non-leveraged ETFs. As per yesterday's video on the semiconductor stocks, for those comfortable with shorting individual stocks & have enough capital to properly diversify among various semi stocks, in order to mitigate the risk of any one stock moving sharply against your position, shorting [...]
This video is provides a brief (under 12 minutes) overview of the key technical levels, developments & prices targets for the stock market via SPY, QQQ & IWM as well as some of the sectors that stand out as attractive trading opportunities at this time.