ISQ5 trade ideas
$SOXX - Mountain TopEntered my 1st pos short via $SOXS - One of the hottest sectors this year since the Feb 2016 lows.
SOXX: UPDATE on "Just another -Semiconductor-short trade Reached first support/demand zone, after kissed good buy the lower boundary of the wedge. Q's also at support/demand zone
SOXX: Just another semiconductors - short - tradeSemiconductor's aligned performance with major indexes is well known and well advertised.
Many felt disappointed and lost money - myself included - when they broke year's old resistance.
With an empty chart - that always help - found the following:
-Doji at the upper boundary of a bearish wedge
-127 fib resistance
-Monthly old money flow divergence, as well as with QQQ's (using them as a Nasdaq proxy){I knew that when shorted at the dotted line the previous time}
Not a revenge trade. I cooked lunch, dinner and the weeklies for the dog before I hit the short button. Watered the flowers too.
Can such a small doji, break such a huge bull? You never know and I don't really care. Even one downtick or a fraction of a penny can break empires at the right time, the right moment. As long as a good R/R exist, I sleep ok.
Just another trade.
Cheers
P.
Semiconductor (SOXX) vs. Emerging Markets ( EEM)Interesting pair here. Although the ETFs are tracking different sectors, the correlation between the two in the past 100 days is good ( 70 % + ), but more importantly , the co -integration is high @ 86 %. This is the 3rd trade this year for this pair. So far, all trades have been successful.
CORRELATION : 70%
COINTEGRATION : 0.86
LONG SOXX (GREEN) @ 50.02
SHORT EEM (RED) @ 41.40
