Wyckoff Concept
A Wyckoff tenet concerning directional moves, is ‘shortening of the thrust’.
As a move nears its end, net upward progress between thrusts, shortens.
On a closing basis, we see the SOXX launching ever higher but net progress after pullbacks, is getting shorter (not advice, not a recommendation).
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Lance has also written extensively about this in his substack and in a nutshell, the soxx is behaving like a late-cycle chase trade. This should unwind violently sometime this summer, if not earlier. I have to imagine there’s a juicy short trade opportunity coming. We’ll soon see.
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Thank you for the extra info.
This move has gone parabolic, very much like the silver top and collapse from my perspective.
We’ve had two recent examples (at least) of commodity-type blow-off tops. Silver, SLV and CAR.
The problem is, to position for the silver collapse, you had only one day or even a few hours to go (low risk) short.
Just like the CAR implosion. The signal was buried in the hourly bars, in real-time.
If the Wyckoff analysis on this post remains in-effect, meaning, if there’s not some other demand that comes in and pushes ever higher, the SOXX could be very close to either a pause leading to consolidation, or outright (violent) reversal.
I appreciate the help.
Regards,
Paul
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