The Semiconductor ETF SMH is meeting resistance here @ 260. The last several times the SMH index ETF met this trend resistance has resulted in a push to lower lows. Could this time be different? The MFI (Money Flow Index) seems to be suggesting it is a possibility. Although SMH is riding a downtrend, SMH price volume momentum is in overbought territory. A SMH...
Break of structure Gap up on open and waited for pullback and brought calls on continuation
... for a 3.43 debit. Comments: Filled for a 5.55 credit (See Post Below). Taking 2.12 ($212) worth of profit here ... .
Down side target from H&S top is 179 which coincides with the .618 retracement from march 20 low to high. See you there soon.
Also a Head and Shoulders pattern with a "wide" head. Bad tops come in all different shapes and sizes and is why I just call them "ugly tops" sometimes. The similarity between top patterns is price hits a certain level and can NOT break the high. Rectangles are easy to measure as it will most often break up or down the width of that rectangle and you need only...
... for a 5.55 credit. Comments: High IVR/high IV (80/46). Selling the 15 delta strikes on both sides. 5.55 credit on buying power effect of 23.58; 23.5% ROC as a function of buying power effect at max; 11.8% ROC at 50% max. As usual, will look to take profit at 50% max and/or manage sides on approaching worthless/side test.
... for a 3.44 debit. Comments: Filled for a 5.20 credit (See Post Below). Out here for 3.44; 1.76 ($176) profit.
Main Pattern: Weekly Reversal Head & Shoulders Entry Short on 26 April
The Elliott counts would suggest that there is an opportunity to go long at market and at 224. The correction will follow to take prices higher to 252.
VanEck Semiconductor ETF ( NASDAQ:SMH ) Sector: Miscellaneous (Investment Trusts/Mutual Funds) Market Capitalization: $ -- Current Price: $234.73 Breakdown price (hold below): $237.35 Sell Zone (Top/Bottom Range): $241.85-$261.90 Price Target: $206.40-$204.00 Estimated Duration to Target: 67-72d Contract of Interest: $SMH 6/17/22 200p Trade price as of...
So, we have not seen the confirmation yet that the economy is slowing down. Semi is getting crushed because China is in lock down. These are very high valuation with a likely change to more defensive spending budgets this quarter.
... for a 5.30 credit. Comments: Selling some nondirectional premium in semiconductors (implied volatility rank 60/30-day 41.2%) in the May monthly (42 days 'til expiry). 5.30 on buying power effect of 24.94 (on margin); 21.3% ROC at max as a function of buying power effect; 10.6% at 50% max.
SMH Semiconductor ETF is at a major support trendline (white dash) and EMA377 (blue line). SMH is a screaming buy now. Technically speaking, there is essentially no downside risk and plenty of upside reward at this entry point. Computer chips, also known as semiconductors, are the brains of products like smartphones, computers, cars, medical devices, digital...
Looking for a fill of the gap at 232 which coincides with the 2.0 extension of this 5-wave move down. Head & Shoulders pattern with negative MACD divergence.
... for a 4.29 credit. Comments: Received a 5.90 credit for putting this on 6 days ago. (See Post Below). Taking 1.61 ($161) of profit here -- 27% of max with 35 days to go.
... for a 5.90 credit. Comments: High IVR/high IV (96/48.5). Selling the 15 delta-ish strikes on both sides; 5.90 credit on buying power effect of 25.37 (on margin); 23.3% ROC at max; 11.6% at 50% max.