2 weeks ago
20
Traders,
I look forward to sharing some of my top ideas with you all for the upcoming week. So, without any delay, let’s get right into it:
Starting with what will likely be my main focus for the upcoming week, the semiconductor sector.
SOXL Short: The semiconductor industry has been on a tear lately, with phenomenal momentum and multiple weeks of follow-through on the upside. Now that the sector is in extreme overbought territory, I’m looking for a reversion trade.
On the higher timeframe, I remain bullish overall, but charts don’t lie. And when a sector extends significantly from its mid-to-high key SMAs, and we get range and volume expansion, along with an RSI approaching 90, it’s definitely not the time to be positioning long. Rather, it’s time to look for profit-taking and a short opportunity. Thereafter, once certain names / the sector pull into their 5-day and maybe even their 10-day and bases, I’d look for longs.
English (US)