This chart shows the long-term ratio between SOXL/SOXS. The intent is to detect reversals
between semi-conductors long and short. At the pivot high, the price of SOXL compared with
SOXS is at its highest. With a retreat from the pivot high, the price of SOXL is retreating while
SOXS is rising. Historically in 2022 as shown on the chart, pivots were with a ratio of 1,25 to
2,35 while the low pivots were with a ratio of 0.2 to 0.6.
At present SOXL has run up and over-extended as part of the AI breakout phenomenon. The
ratio of 1.8 is in the reversal zone where SOXL price is dropping while SOXS price begins
a significant rise. At present, the mass index is above 27 and awaiting a drop below 26.5.
The second indicator rate of change (ROC) detects spikes in the SOXL /SOXS ratio presumptive
for a pivot. The last time SOXS ran up over a long term ( with SOXL turning down)
was August to October when price increased from $33 to $88 representing a 266% rise.
I see this as a prior supertrend that could now be repeated again.
In conclusion, this idea leads me to take a swing long position is SOXS which I expect to
trend up over a period of a couple of months or more.
between semi-conductors long and short. At the pivot high, the price of SOXL compared with
SOXS is at its highest. With a retreat from the pivot high, the price of SOXL is retreating while
SOXS is rising. Historically in 2022 as shown on the chart, pivots were with a ratio of 1,25 to
2,35 while the low pivots were with a ratio of 0.2 to 0.6.
At present SOXL has run up and over-extended as part of the AI breakout phenomenon. The
ratio of 1.8 is in the reversal zone where SOXL price is dropping while SOXS price begins
a significant rise. At present, the mass index is above 27 and awaiting a drop below 26.5.
The second indicator rate of change (ROC) detects spikes in the SOXL /SOXS ratio presumptive
for a pivot. The last time SOXS ran up over a long term ( with SOXL turning down)
was August to October when price increased from $33 to $88 representing a 266% rise.
I see this as a prior supertrend that could now be repeated again.
In conclusion, this idea leads me to take a swing long position is SOXS which I expect to
trend up over a period of a couple of months or more.