After the rally in semiconductors we should see a cool down of the rally, but with sustainable higher stock prices till 2022.
Then the correction in this sector should be take place.
So holding semiconductors or buying dips are possible this year.
at the same time, SOX daily chart showing ADX twin peaks (negative divergence) and RSI divergence.
Disclaimer, this is only for entertainment and education purposes and doesn't serve by any means as a buy or sell recommendation.
Personally I hold both long term long positions and occasionally short term short position, for disclosure purpose.
Insane what we saw for a rally since March 2020. Especially the TechSector and Semiconductors reach now a level which is crazy and not healthy. If you now invest in the broader market you hope that you´r not the last one who bought into the rallye. It´s time for a correction, so new money can flow into the market.
Watch out and take care of your Risk and Money...
A Must-see chart on the Semiconductors, very similar to my SPX count. Just as with the other drop prior, we could see a double top here on the 4-hr. If this has a double top, I might try to find bearish positions in other names such as INTC.
I am simply just re-charting what I've seen on Bloomberg. Link to the video:...
SOX look like as resistance is ahead. Weekly Cup and handle pattern very close to be complet. For me, it's a High tail warning but not confirmed. Lot of room below before to touch the lower trend line. SOX is still bullish until that happen only a breakout of weekly lower red trend line would change it for bearish.
Using Elliott wave one can determine once an uptrend has ended as the market simply has run out of waves. Here I assess the waves off the November 2008 low (yes the NASDAQ:SOX ) bottomed well before the other major US indices and has thus been a market leader since. However, it's price pattern off the December 2018 low is all but ideal and in elliott wave terms...
As posted previously regarding SMH, here is another look at SEMICONDUCTORS via the SOX.
Semiconductor stocks have PEAKED after a major bull run (from a minimum of 2009 and possibly a lot longer 20-30yrs...this could be the end of a SUPERCYCLE). There is a fairly picturesque Elliott Wave count in play which suggests we are heading for a MINIMUM pullback of 40% and...