If you connect all the highs on the $SMH over the last four months, there is a perfect . Today's news in the semiconductor sector spiked the $SMH to that again. Since the $SMH has been unable to get above that level, I am shorting it. This is a classic technical trade. In addition, insanity has reached epic proportions. Whether this rumor is real or fake, the valuations on the semiconductor sector are stretched beyond even an extreme level. From the 2016 lows, the $SMH is up 53%. Not normal folks, not even close. With the help of this , I am shorting this sucker and looking for a pull back as we have seen every time this has been tagged. It is a high reward, low risk trade in my opinion.