After calling for a severe correction in the semi-conductor index - $SOX - in Wednesdays Market Update, we saw the 3X leveraged bear - $SOXS - up 13%, on Thursday!
This call may pale in comparison with the market top I called back in January, or the bullish breakout I called for in the broader market, going into last Friday's close - not to mention the most recent top I called on the broader market, on Wed, but this trade was perfectly timed, and executed, and the news - manufactured or not - confirmed the trade. $SOX (short) was the place to be, and calling out that specific sector, is what makes this one worth celebrating.
"Taiwan Semiconductor Warning Hits Chip Stocks And Apple" [investors.com]
I expected this trade to take a couple more days to work, heading into OPEX Friday, and that's usually how it goes... so having this trade pay early is an added bonus!
As I tweeted out yesterday afternoon, I've already taken profits, and expect dip buying at the bottom of the bullish channel. Could provide for a nice 3 day swing trade, going into next week.
$SOX is a market leader, so yesterday's reversal could be bad news for the tech bulls. We may see the NASDAQ follow, but time will tell. I can tell you the $NDX is sitting above support. Even $SOX didn't take out the previous bottom, so a bearish reversal can't be confirmed, yet...
How 'bout that bearish NATGAS trade down 3%?!! I was bearish last week, and I remain bearish, now that support at the 50 day ma has been taken out.
Have a great weekend, AA
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