Nascent Move

Is downside potential in the SOXX, just a throw of the dice or was last week’s action significant?

Taiwan Semi (TSM) posted what could be an exhaustion top.

Former leader Nvidia (NVDA), now potential laggard, only ticking up 0.13-pts, to new high before hesitating, pulling back.

Suppliers of processing equipment, the nuts-and-bolts of semiconductor production, have imploded.

It all looks significant, even from a cursory standpoint.

As kabuki theater rages on at the highs, SOXX itself, is down over -14%, from its July top.

Semiconductors SOXX, Daily

“What do you see?”

Is this the (hidden) channel?

Tuesday the 15th, posted down hard; then, traded in the lower half of the range for the rest of the week.

Positioning

Obviously, with all of the above, lower action is the expectation going forward.

However, if the SOXX, decides to reverse higher, exit of short position, SOXS-24-18, is likely (not advice, not a recommendation).

Stay Tuned

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