Did The SOXX (and A.I.) Just Top?

October 22, 2025 By in Artificial Intelligence, Positions, Prechter, Semiconductors, SOXX, SOXX-25-17 4 Comments

While Everyone’s Watching The Metals

Yesterday, the metals and miners imploded.

While all the focus was on them, back at the ranch, the SOXX reached another top.

Last time we looked, the index had an apparent Fibonacci count that has since been negated.

Robert Prechter said it himself decades ago, ‘price action form is first, then time’.

The SOXX then went on to post a new all-time high.

Semiconductors SOXX, Daily

Note yesterday’s bar posted a new daily low after the all-time high.

As the SOXX, oscillated in a narrow range, it became apparent we may be at a significant inflection; three separate shorts were opened, combined into one position as shown (not advice, not a recommendation).

Pre-market action (7:55 a.m., EST), shows the SOXX trading at 288.09, below yesterday’s low of 289.22.

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

4 responses

    • Good morning,

      Yes, I’ve traded DRV; the last time was around mid-to late 2023.

      Like every index or ETF, it has its own characteristics. From a personal standpoint, I found it difficult to get a ‘feel’ for the price action.

      Let’s take Nat-Gas, UNG as an example. The last update showed the error in the analysis but then listed a potential spring location.

      Price action went on to that point, near exact, then launched. Good stuff if you’re long. However, tomorrow is the next release of EIA and potential test. Sometimes it’s brutal, other times it’s not there.

      So, we have some understating of the sector and a feel for the action.

      With real estate, I could never get that feel. So, I leave DRV alone.

      Your experience may be different … no problem with that.

      I hope that helps at least a little.

      Thaks for the question.

      Paul

      Liked by 1 person

      • No I understand that. People say you can’t copy another trader’s ideas because you can’t copy that trader’s temperament or psychology. Every trader does better in a different environment. You can feed a good trade setup to 10 different traders but they’ll come back with 10 different results. Trading and investing is funny in that regard. It doesn’t really matter what the market does, what matters is who pilots the portfolio.

        Liked by 1 person

      • My style or what’s being presented on this site probably won’t appeal to most. if I had to label it, it’s similar to Mr. Partridge, a.k.a. ‘Turkey’ in Reminiscences of a stock operator.

        That is, get into position and maintain as long as the market dictates.

        There’s a lot of activity going on, only because that positioning effort is taking place. As of this writing, the SOXX is trading lower. A new daily low with no new high helps to set the hook we may have seen the top of the A.I. bubble.

        Nvidia broke its earlier trendline and has established another. That might be covered today if Nat-Gas does not slam lower in a test.

        Thanks again for your input.

        Paul

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