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AwesomeAvani
Jun 6, 2023 3:45 AM

Short Semiconductors by Trading SOXS Long Long

SOXL/SOXSArca

Description

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.
Comments
mitztrades
Hey man what are your views on panw? Replacing dish network on the s&p…good for a long ?
AwesomeAvani
@mitztrades, PANW is a good one made money on it in April. Tradingview has all the technical indicators at buy or strong buy. Made money on PATH and SNOW on the AI breakout. Overall, for me it would be a cautious buy only because I think high technology is over extended. If I bought I would monitor it closely as I think it may be topped out.
AwesomeAvani
mitztrades
@AwesomeAvani 🙏🏻
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