Here's how I'm trading SOXL right now. I buy when it gets below the red channel and sell when it gets above the red channel. A breach of either of the blue trend lines would indicate a breakout from the current trading range. So I'm keeping a stop loss just below the lower blue trend line.
Today I exited at 170, and my next buy order is at 152.50. I hope to see that Monday, although with trade talks coming up in mid-October, we could easily see the uptrend continue.
In my opinion, semiconductors are overvalued right now. Given the weakness of their earnings, they haven't fallen as far as they should. But if we successfully sign a trade deal, they will explode to new highs regardless of their earnings. So keep an eye out for China news.
@gwallusche, probably not 200, though if tariffs go into effect on December 15 then semis should drop, and there's a possibility that earnings recession could hit the sector in 2020.
gwallusche
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@ChristopherCarrollSmith, I missed the entry at 199 thinking it was going to go lower! So, I will wait until end of year to see if it drops something.
Thanks