How Low Can It Go?

Since the A.I. money’s already been made on the upside, it could be time for the bears to set the hook on the shakeout, driving the Semiconductor sector farther down.

This just out from the Mises Institute; author Justin Murray argues, A.I. is essentially an expensive hype, that’s run its course.

With that, we’re not going to belabor whether A.I., is a bubble, a scam, a grift, or not.

No, we’ll let the price action itself make the case. 🙂

It’s hard to argue with the reality of the chart

Semiconductors, SOXX, Daily

If the trading channel remains in effect, we can see the downside potential is enormous (not advice, not a recommendation).

The arrow shows the entry location of the current, active short: SOXS-24-15.

Since that initial entry and with nearly each price rebound, the short size has been increased (not advice, not a recommendation).

Stops Are Tight

It’s important to note, as of this post (11:38 a.m., EST), the SOXX has not (yet) made a new daily low.

In the markets anything can happen. We could always get an upside reversal.

However, from a seasonality standpoint, September is typically the worst (downside) month of the year.

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