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...
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.
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.
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...
SMH, semis etf still holding this breakout area. If we fail to hold then fall back in the triangle otherwise this is a break retest bounce type of scenario. In market analysis semis didn't do so well today compared to the rest of the market
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.
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