... for a 1.32 credit.
Comments: Targeting the shortest duration <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semiconductor ETF.
I have no current position on in SMH, so will look to add at intervals should IV remain decent (it's currently at 28.7%, but at the low end of its 52-week range).
... for a 1.26 credit.
Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semiconductor exchange-traded fund. Here, I'm adding a rung at a better strike in the November monthly than what I currently have on.
Entry: with price above 155.94
Volume: with volume greater than 6.58M
Target: 174.83 area (this is an area, no guarantee it reaches this price, but you should be selling on the way up)
Stop: Depending on your risk tolerance; Based on an entry of 155.95, 146.50 gets you 2/1 Reward to Risk Ratio.
This LONG swing trade idea is not trade advice and is...
The problem with SMH:
Today is attempting some recovery off Fridays big red candle with what has potential to be a piercing candle, but needs to clear at today's close above Friday's pivot at 147.84 to offer any hope.
The test is label B, at 143.35. Bulls will want this to hold, or it will be a fast trek down from there.
9/21/23 will be a key day, if the...
Last time we saw the bullish moving average cross of the 7MA & the 590 MA we saw a superb rally over 2.5months.
This time we are seeing a bearish cross of the same 2 moving averages. Could this replicate the move to the downside?
Don't say we didn't caution you!
If you like fractals, you will love this. Ratio of SMH to SPY shows a possibility of repeating an earlier fractal where there is a big drop in the SMH compared to SPY (SMH/SPY ratio).
As with any ratio, one needs to gauge the action of the numerator as well as the denominator.
So, either SMH declines faster than SPY, or SPY increases faster than SMH...
Semiconductor stocks have surged this year, thanks in large part to NASDAQ:NVDA Nvidia. But they could be losing relative strength to software makers within the technology sector.
Today’s main chart focuses on the NASDAQ:SMH VanEck Semiconductor ETF, which closely tracks the NASDAQ:SOX Philadelphia Semiconductor Index. It recently slipped below the 50-day...
I published my analysis about AI bubble burst in August, now it looks like TSLA supercomputer Dojo has attracted market attention and drain liquidity out of NVDA and cryptocurrency market!
At the time of writing this article TSLA is +9.1% and NVDA -2.16%, and my quantitative model scored TSLA +10 (Max buy) and NVDA -10 (max sell).
Meanwhile, cryptocurrency market...
The SMH is the semi conductor exchange traded fund (EFT). This chart is a perfect example of the place where traders can generally count on a bull bear battle.
When price is falling, the human nature tendency is to think what's happening now will continue to happen in the near term.
All charts act and react the same way. In fact, Mrs. Market is simply...
Big gap drops SMH to a key Gann area (upper red dashed line) for a 50% retrace on the ABCD. Could bounce here, at the APEX of the volume profile (not shown) although RSI (9) looks very bearish with downtrend below 50.
SMH being held up by a few big names, I am looking for a retrace closer to the bottom dashed line, or somewhere around the 61.8 % ABCD retrace.
... for a 1.34 credit.
Comments: Adding a rung out in the November monthly so that my October rung doesn't look so lonely ... . It's actually because SMH 30-day IV is still fairly decent at 31.6%; the only options liquid ETF's with better IV are GDXJ (35.2%) and FXI (32.0%).
Targeting the <16 delta strike paying around 1% of the strike price in credit to...
... for a 1.60 credit.
Comments: Just adding a little sump thin' sump thin' in high IV exchange-traded fund land, selling premium that targets the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semicon sector.
Here, 30-day IV is at 33.4% and at the top of my liquid exchange-traded fund board when...
Tomorrow, 8/18, is a critical day for Semis. Should the selling continue, to the tune of -1.38% off today's close, and we could see a break of a key Gann Confluence support at 143.50 (middle circle), which is a prior pivot (left circle).
Below that area is free-fall (yellow highlighted), low volume, and little support. The 136 area I had pegged a while back on...
Monthly chart of SMH with HZ Line breakouts shown. Currently in a test of top with a bearish RSI Divergence. Composite Index also shows bearish divergence.
