Hardest Part … Waiting

Back in the day, Robert Prechter Jr., said it himself (paraphrasing):

‘You can reap a windfall, just by monitoring a trendline’

Of course, the hard part is identifying the trendline … if there even is one.

Implied with that, already being in position to take advantage of that trendline.

Building The Trade

Positioning short in the SOXX (via SOXS) has been a process of iteration; from SOXS-24-12, until now, SOXS-24-15 (not advice, not a recommendation).

All of those trades have been documented on this site.

Note: Enter the trade number (or, copy-paste) into the search window and then click on the sidebar to get chronology of all posts related to that trade.

With the SOXX, opening down, yet again, one has to ask; is there a trendline and if so, where is it?

Semiconductors, SOXX, Daily Close

I’m taking artistic license to draw where I perceive is the current right-side trendline.

Also note, this update is being released with about 90-minutes left in the session.

The closing price is yet unknown.

Going forward, price action itself will either confirm or negate the right side.

Positioning

As shown on the chart, the current (active) short trade, via SOXS, was opened last Friday at the ‘False Breakout’ (not advice, not a recommendation).

With price action continuing lower, it would be nice for this position to become a boring series of actions; moving the stop until the trend break and/or exit.

All the while, keep in mind, we don’t know what our ‘October Surprise’ is going to be … yet.

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