The ‘AI’ Reversal

It looks a little unstable for the ‘AI’ bulls.

The top in the SOXX, was correctly identified, here.

The potential completion of the downside test and reversal was discussed, here.

After that last post, the SOXX limped higher for one day, before reversing, today.

In fact, today’s session lows took out the daily lows of the prior two sessions.

This update will be brief.

A short position (via SOXS) was initiated on Friday June 30th, then increased by 20%, this past Monday, July 3rd (not advice, not a recommendation).

Semiconductor Leveraged Inverse Fund SOXS, Daily

Entries are shown as Arrow No. 1 and No. 2

An original soft stop (trader discretion) and hard stop were given of 9.75, and 9.48, respectively.

Price action on Monday pushed through the soft stop and trader discretion was to maintain the position.

As a result of today’s action, the hard stop has been moved up to SOXS 9.54, with a soft stop at today’s SOXS low of 9.76 (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279