The Taiwan Connection

Eyes On The Prize

Huge truth bombs from a just released Stew Peters broadcast, linked here.

At time stamp 15:25, one of the major truths is Taiwan; specifically, Taiwan Semiconductor, TSM.

Why Taiwan?

Why focus on Taiwan Semi and its connection to the Emerging Markets, EEM, ETF?

We’re focused on it because that’s what the tape itself is telling us to do. The EEM, has already been in a sustained downtrend since mid-February, last year.

It’s been three successive (chart) quarters of lower lows and lower highs.

Looking at semiconductors in general, out of the top ten market cap equities in the SOXX, only TSM, is at or below its 23.6% retrace level. All others have rebounded much higher.

As Wyckoff said a hundred years ago … ‘somebody always knows something.’

Meaning, those really in charge (time stamp 2:53, above) already know the plan; their actions show up on the tape.

We’ll look at those tape actions with TSM below

Taiwan Semi TSM, Daily Bar

Moving closer in on the daily, we have the following.

It’s clear, at this juncture, price action has stalled.

Two sessions ago (Wednesday, 23rd) there was an outside down (reversal) bar.

This session and yesterday’s, have been inside action so far.

There has been no new high or low, posted.

Although today’s action posted below yesterday’s low, it has not posted (currently, at mid-session) below the reversal low.

Summary

Anything can happen.

Price action, TSM could launch upward past the resistance and continue to a 38.2%, retrace.

At this point, it seems to be low probability; all the good news (i.e., the short squeeze), may be out.

We’re heading into the weekend and we’ve seen over and again, that’s when things go sideways.

As Livermore said, ‘surprises tend to happen in the direction of trend’.

TSM, is and has been, testing the underside of its breakdown; it now appears poised to continue lower.

Stay Tuned

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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

Taiwan Semi … On The Edge

Down On Heavy Volume

Taiwan Semi (TSM) is the heaviest weighting in both the Emerging Markets, EEM, and the SOXX.

Those indexes were down sharply on Friday with EEM, losing just over -2%, and the SOXX down -2.65%.

Even though the SOXX, was lower in percentage terms, it’s EEM, that may be entering free-fall territory; led by its largest component, TSM.

World (planned) Instability

At this point, that’s an understatement.

There’s no telling if somehow, Taiwan (the nation) is going to be dragged into the fray.

Note: As this post was being finalized, we have this, just out.

The good news (sort of) is from a Wyckoff analysis standpoint, we don’t have to know the inside scoop on who or what has plans to do next.

To be very blunt, those in the know are so arrogant and greedy, their actions are going to show up on the tape.

That same arrogance and greed was rampant in Wyckoff’s day … why should it be any different now?

Taiwan Semi (TSM) Weekly Chart

As we can see, TSM closed the week just below support on very heavy volume.

Downward thrust pressure is immense.

The coming week could see an attempt to ‘relief rally’ or we could just continue lower in earnest.

If TSM breaks lower, it’s in ‘free-fall’ territory as there’s no real support until the 80-area … down nearly – 24%, from current levels.

Leveraged Inverse Fund: EDZ

As covered earlier, the leveraged inverse fund EDZ, has picked up in volatility as well as trading volume.

The daily (close) chart showing the breakout is below:

The second chart documents trade entries and current stop location (not advice, not a recommendation).

The entries may look to be at ‘elevated’ levels but recall in the last report, the market tested its breakdown … tilting probability to the downside (upside for EDZ).

Entries were made at support/resistance trendline break and test … ‘the danger point’

The EDZ, fund typically, is not popular and is normally very quiet; however, that all changed in the past two weeks.

The EDZ, Entry

Let’s dig into the nuances of the entry on the two charts below. From the closing chart above, the entry looks like it’s hanging in mid-air.

Looking the ‘prints’, shows the entries made at (nearly) the lowest risk point(s) possible.

The day prior to the 10.86, may have been the best but recall from this update, the entry was made as price action tested the breakdown of support/trend on the EEM.

The trade plan for the next day (March 3rd) was if EDZ made a new daily high, the breakout is likely underway.

Another entry was opened (mid-session) as price action pulled back from that new daily high (new low for EEM).

Note the stop was originally set at the March 2nd, low of 10.69, then moved up to 10.90, the next day.

If stopped out at this juncture, the entire trade would be at break-even (not advice, not a recommendation).

Note in the charts above, there were several false attempts to break to the upside. Each attempt was followed one or more red bars (candle) that negated the attempt.

The current breakout looks like the real thing but it too, was initially followed by a red candle (February 25th).

In this instance, price action reversed and started making higher-highs and higher-lows.

That was the signal to go long.

Summary:

At this juncture, trade EDZ-22-01, is fully positioned (not advice, not a recommendation).

Anything can happen between now and the open on Monday. However, the power of TSM’s thrust lower suggests downside continuation is a high probability.

Let’s not forget, we’re in a market environment where a ‘fat-finger‘ upset is not just a possibility but highly likely.

Stay Tuned

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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

Bears To Seize Control ?

World Chaos, Continues

The long-time reasoning behind this site’s ‘short only‘ trading plan, is becoming abundantly clear.

For years, there have been no ‘long’ trades on anything except leveraged inverse funds.

The premise? A ‘disconnect’ can happen at any time.

At this point, we’re getting to see those potential disconnects in real-time on a near continuous basis.

The past week bled-off the massive put leveraging; thus, setting the market up for (potential) downside reversal.

Getting Back To ‘Normal’

Those who bought the dip in Pavlovian fashion, may be thinking at some point, we’ll get back to ‘normal’.

News Flash:

What’s happening now, Is The Normal.

This is how it’s going to be on a go-forward basis.

Conflict, shortages, supply chaos, weather weaponry, nuclear saber rattling, bank runs are now, all normal.

With that, let’s look at last week’s markets and the set-up for the week ahead.

The SOXX, Rebounds

The last update discussed being short the semiconductors via inverse fund SOXS (not advice, not a recommendation).

The stop was hit, and that position (SOXS-22-02) has been closed out with a gain of about 6.2%.

Note how in the daily chart below, price action came right up to the stop level shown previously, then penetrated that level ever so slightly.

The ‘market’ knows where you are.

Being (stopped) out lets one look for a better opportunity.

Biotech (SPBIO), The Next Set-Up:

Turns out that biotech, SPBIO, may be at a low-risk juncture for a short via leveraged inverse fund LABD (not advice, not a recommendation).

Yesterday’s post highlighted some of the reasons for a biotech reversal.

The analysis below, builds on that reversal potential.

The weekly chart of SPBIO, has a channel and Fibonacci time correlation(s).

The next chart zooms-in on a possible target for a move lower.

Leveraged Inverse, LABD

Another reason to think SPBIO, is ready to continue downward, can be seen on the 4-Hour chart of LABD.

The prior report had daily range narrowing.

Getting closer into the action, we see the 4-Hour range narrowing as well.

In addition, down-thrust energy (Force Index) for Friday’s move appears to be exhausted.

Positioning

Early or late? If you’re trading professionally, that decision must be made ahead of time.

Some traders like to wait for ‘confirmation’ of a move and there’s nothing wrong with that.

For this author however, waiting for confirmation means I’m late. I’m behind the curve and ‘chasing’ the market.

With that said, LABD was entered towards the end of the session on Friday at 41.05 (not advice, not a recommendation).

We’ll find out soon enough, if Monday’s open will be in-the-green.

Summary:

Even as this post is being created, world news continues to pour in … this time, from North Korea.

Anything can happen in the coming week. The markets could somehow ‘shake-off’ all of the news and move higher.

However, probability suggests market continuation to the downside.

At this juncture, we’re about six hours before the Sunday futures open.

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

Bleeding Down The Options

Two Ways To Make ‘Put’s Worthless

The first way is of course, a rally to the upside.

That’s what market traders are expecting based on massive (retail) put option buying; the largest on record.

The other way, not talked about as much, is the boring way.

That is, the slow grind of time.

The massive positioning with puts can be ground down to nothing as well by the market going sideways or down but not down fast enough.

The semiconductor index the SOXX, has already pushed lower in a massive energy thrust (details here and here).

The instabilities from this action need to be worked off.

Prior analysis shows the most likely outcome, if yesterday’s highs are not breached, is a sustained move to the downside.

Let’s take a look at what the SOXX, is saying about itself.

SOXX, Daily Chart

We’re about ninety minutes after the open, with the following chart.

Marking up the chart, is a potential stop location for an open short position SOXS-22-02 (not advice, not a recommendation).

If SOXX penetrates that level to the upside, the market is either reversing higher or heading higher for more testing.

Either way, it’s not (for my firm) the place to be short.

The next chart shows a possible trading channel.

Price action can hug the right side of this channel and decline slowly enough to effectively neutralize the massive put positioning as linked above.

That scenario is not generally discussed. It’s not exciting and it does not get ‘clicks’.

Summary:

Today’s action will be important. A new daily high will close out the SOXS-22-02, short (not advice, not a recommendation).

A slight new low or and inside day, keeps the trade alive and results in one more day of put options bleed.

Everyone seems to be expecting a crash or a short-squeeze.

What’s not expected, the most frustrating for both sides … is neither.

Stay Tuned

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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

Intel … Off the Cliff

Four-Year Top

Kick-Off … To The Downside

A massive four-year top, along with the latest ‘road-map‘, has this one going down; most likely, for good.

While other chip makers, have gone to near stratospheric levels such as Nvidia, with its 23,960% gain from 2009, lows, Intel has languished.

The rest of the markets, S&P, Dow, QQQs, have pushed on higher while INTC, has spent the last four years, in a trading range.

A sideways market is a bear market.

Intel never recovered its luster after the Dot-Com mania of the 2000s. Price action spent eight years heading sideways-to-down before bottoming out in early 2009.

After that, it’s been a long struggle to current levels.

Now, the markets have reversed and the economy’s collapsing. We’ve likely seen market highs that won’t be repeated in the lifetimes of anyone reading.

Friday’s announcement may be the kick-off for sustained price action to the downside.

INTC, Chart Analysis

The daily chart shows at least one breakaway gap and possibly two.

The next chart is on the weekly timeframe and identifies the long, multi-year, topping pattern.

When looking at these patterns, be reminded about the scale of what’s happening.

This wedge is massive … at least four years in the making.

Note: Price action finished the day right at the lower support. There could be a rebound on Tuesday (market’s closed Monday) or we could just keep going lower.

The SOXX Connection

Intel’s fifth in market cap of the SOXX, with Taiwan Semiconductor (TSM) at the top of the list.

Even the leader TSM, may not be immune to trouble.

Here are Fab locations for Taiwan Semi, located just off the coast of mainland China … nothing bad going to happen there, right?

And then, there’s this:

The SOXX, Drops

The SOXX, has been analyzed using Elliott Wave and Wyckoff.

Each method indicated potential for reversal.

In the case of the ‘wave’ analysis, if it proves correct, we’re possibly in for a sustained ride lower.

The daily chart of SOXX, shows each analysis point where a reversal lower was projected.

It’s clear from the chart and documented links, both methods nailed it … to the day.

Elliott was earliest and caught the exact point of inflection.

Wyckoff caught the test of the up-thrust.

Here’s the important part:

Wyckoff is a practical, bread and butter method. It looks at what the market’s saying about itself … is price action showing pressure to the upside or down?

Elliott Wave looks at where the market could be or is going.

If we’re really in an Elliott Wave Three down, it’s likely to be a decline like no other.

There are other indicators not market related, giving us hints, a massive collapse is ahead.

A Decline of ‘Biblical’ Proportions

Warning:

The following contains scriptural references.

Those who are in ‘it’s all a myth and fairy tales’ crowd, feel free to scroll to the ‘Summary‘.

For the rest of us, the secular world calls it ‘systems collapse’. The spiritual world calls it ‘judgement’.

Stated many times on this site, ‘the church’ is corrupt. Here’s just the latest salvo proving that point.

Along with the corruption, we now have the strong delusions prophesied over 2,000 years ago.

In reference to a Stew Peters broadcast, linked here, on the numerous media lies, is this comment (emphasis added):

“The only people to blame for this Stew are the ones who put on the mask, who distanced, who took the shot, who harassed other people and who advocated for my freedoms being taken away. Without doing five minutes of research.”

It’s not too much of a stretch to say, those who voluntarily injected themselves were (or are) in a place of delusion.

“And for this cause God shall send them strong delusion, that they should believe a lie:”

Also said many times, ‘The Speck’ as we call it, is a hoax. It’s a lie. It does not exist.

However, the injections are no lie … but the reasons for those injections are false.

Can this (spiritual assessment) really connect with what’s happening in the markets? How does it relate to actual price action?

Obviously, it can’t and shouldn’t be said that any specific price movement has been prophesied.

However, we can use the scriptural references to point us to the probability of events; the big picture, the situation at hand, the signs of the times.

The probability that we’re at some kind of major inflection point of Biblical proportions, seems exceedingly high.

Summary

Both Elliott Wave and Wyckoff Analysis, support the probability of lower prices ahead for the SOXX.

Because Intel (INTC) has been a laggard in the sector for years, suggests it may be one of the downside leaders.

As if to confirm the assessment we’re past the pivot, that generational highs have been reached, we have this just out, on ZeroHedge.

At the very bottom of the article, is a quote.

No, they’re not quoting from the King James Bible of 1611; they’re quoting from Shakespeare’s Richard III, of 1594.

Stay Tuned

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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

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SOXX, Ready To Drop

All The Good News Is Out

Liquidity Risk?

It’s been long enough; most have forgotten the ‘Flash Crash‘ of 2010.

That crash happened in May of that year.

May of this year, would make it 12-years and interestingly, a Fibonacci 144, months.

Normalcy Bias:

As Nissam Taleb said in his book, ‘The Black Swan’, every day is like every other day on the farm, for Mr. Turkey … that is, until Thanksgiving Day.

Let’s take a look at the historical chart of Semiconductor ETF SOXX, and see the effect of a Flash Crash.

Easy to spot … prices did recover by the end of the day.

What about the next time?

This report just out on ZeroHedge, shows liquidity is drying up in the bond market. Actually, liquidity has been drying up ever since Dodd-Frank of 2010.

All of this is working (to increase risk) in the background.

Let’s take a look at another unprecedented event … the downthrust and apparent recovery in the semiconductor index, SOXX.

SOXX, ETF, Daily Chart

First up, is the unmarked chart of the index.

Next, we’ll show the recovery higher is on diminishing volume.

There’s no real commitment to the higher prices …. they are just drifting upward.

We’ve already shown the Elliott Wave assessment of the current structure. Now, let’s look at it from a Wyckoff standpoint; Up-Thrust and Test.

Price action posted an Up-Thrust, declined and now has come back for an apparent test.

Confirmation Bias

At this juncture, both Elliott Wave and Wyckoff Analysis present a price action structure that’s set for downside reversal.

In a way, we’re at the danger point for both methods.

Summary

From a personal and corporate standpoint, going long in this market and all markets for that matter, was abandoned long ago (not advice, not a recommendation).

To borrow a phrase from Dan at i-Allegedly, he repeats over and over in his videos, ‘We’ve had warning, after warning’.

So, we have.

The SOXX, is telling us, it’s ready to resume action to the downside. After-hours, already has the index trading lower.

Stay Tuned

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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

p.s. The insight of 2010 Flash Crash, anniversary of Fibonacci 144 months in May of this year, is exclusive to this site.

Herd Behavior … After The Top

Correction, Or Collapse

Structural Damage, SOXX

Even though technical conditions show we’re at least in a correction, if not outright reversal or collapse, record inflows for 2022, vs. 2021, present the herd-driven behavior of the public (and funds), to go long.

According to the link above, flows have been out of bonds and lesser performing equities, into equities that have gone down less.

In addition, you can see some of that flow (not addressed in the article) going into gold and the mining sector.

Stepping Back

Pulling away from charts and indicators for a moment, figuratively closing one’s eyes to get a ‘feel’ for what’s happening, it looks like the following:

We’re in a (potential) massive juggernaut reversal that’s been decades in the making; possibly having origins going all the way back to the ’87, crash, the ’95, bull market and then, repeated bubbles of 2000, ’07, and now.

At this point, it looks like the ‘average investor’ is doing the only thing they know how to do … that is, go long.

Those with at least some market knowledge, just got decisively whacked with their ‘put buying‘ strategy as the market has rallied strongly off the lows.

Pavlovian Panic

We’re witnessing the knee-jerk reactions of a public that’s been conditioned for decades, not to ‘think’, but only ‘do’.

Expect this type of behavior to go parabolic if the markets really do turn lower on a sustained, long-term basis.

Prechter has written extensively about crowds or the herd; especially in his text The Wave Principle of Human Social Behavior.

We can see this visceral behavior real-time, in other seemingly unrelated markets. Two examples below:

First, we had oil futures going negative for the first time in history; then we have LNG tanker rates going negative first time as well.

The model seems to be:

“Everybody wants it, and then, they don’t”.

The crowd runs to and fro, effectively leaderless.

With that said, one can make a case we’re just beginning, or already in an economic collapse; now being followed by the early stages of a market collapse.

Meanwhile, The Elephant Gets Bigger

Let’s not forget the massive elephant that’s just now getting so large, it can’t be ignored (time stamp 2:40).

Recall the example at this link … disparate crowds have a tendency to come to the same decision and modify behavior, all-at-once.

You have to wonder, when that crowd is going to simultaneously press the Sell, button.

Hit, In The SOXX

Unprecedented events are everywhere. That includes the massive, ‘never before seen‘, thrust lower in the SOXX.

The uptrend shown in the weekly chart of SOXX, has been decisively broken and with enormous volume.

The week ending Friday January 28th, saw 16.7-million shares traded … the most ever for the index (ETF).

More detail on trend break

Then, There’s Elliott Wave

Before the ‘Elliotticians’ get miffed by the previous (cookie cutter) comments, here’s this:

When this method works … it’s great.

It provides good projection areas and the useful ‘Fourth Wave of Lesser Degree’, targeting.

Note: A quick internet search for this Fourth Wave method (authored by Prechter) turns up nothing.

Logging onto ‘Club EWI‘, putting in ‘Fourth Wave’ has no items found.

One can try contacting Elliott Wave International, to request a copy of this targeting method. It may still be available (for a price).

The data used by this author to target the 4th wave retrace (shown below), is from a hard copy, dated, 1/8/2003. That information was excerpted from The Elliott Wave Theorist, July 9th, 2002.

First, the 2-Hour chart from Thursday’s update is repeated below with the ‘lesser degree’, added in magenta font:

Getting closer-in on the 4th-wave area below:

It’s subtle and difficult to spot. The price action congestion area is the ‘4th wave of lesser degree’.

Summary:

The previous update showed entry points for what is now SOXS-22-01 (not advice, not a recommendation).

Friday’s price action put this position well in the green; getting it to +24%, based on the close.

The table below are the ETFs being tracked along with the leveraged inverse fund tickers.

The percentage gain/loss, is for this past Friday’s action and shown for the inverse funds.

Obviously, the semiconductors were hit the hardest on Friday and so, SOXS, had the largest gain.

A good stop level for SOXS would naturally be Friday’s low (not advice not a recommendation). If we really are in an Elliott Wave 3, down … price action’s expected to continue its decline with haste.

Stay Tuned

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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

SOXX, Downside Reversal

The Elliott Wave, Connection

A couple of things first.

Number One:

This site does not use Elliott Wave as a primary analysis tool.

However, to be aware of the technique, will at times provide an additional edge … like now.

Number Two:

Once again, gold and the mining sector have become unbearable to watch.

The amount of hysteria, hype and bloviation serves to make this market all about ego. Ego is a four-letter word for the professional speculator/trader.

We’re leaving it alone for now and moving on to the market at hand: Semiconductors (SOXX).

Semiconductors, SOXX

On a Monthly basis, the chart below is the entire trading history for the sector:

The next chart zooms into the area(s) of interest.

This market, the semis, had its most powerful thrust lower in January, for the entire history of the sector.

The following chart is where it gets interesting.

Elliott Wave labeling as shown. If correct, Wave 3, down has just started (not advice, not a recommendation).

Warning:

My former mentor, the late David Weis, who once worked for Prechter, said the approach is a “cookie cutter” (his words) attempt to force the markets into a pre-defined construct.

With that caveat in hand and the understanding the ‘wave’ could fall apart at any time, let’s see what it would project if price action followed the current labeling and structure.

The daily chart shows a Fibonacci projection based on the Elliott Wave labels:

The projections are in percentiles of the first wave distance.

Elliott Wave rules are that ‘Wave 3’ can’t be the shortest wave. If the structure holds, that means Wave 3 (if that’s what we’re in) would go below the 100%, level and potentially to 161.8%, level.

To Trade, or Not To Trade:

This structure was spotted late yesterday … after abandoning the gold sector. There had already been the pre-requisite hype about CPI numbers and such giving the ‘excuse’ for markets to rise.

That meant risk of a short position (yesterday, early today) was low: not advice not a recommendation.

The chart below of leveraged inverse fund SOXS, shows entry points for what is now: SOXS-22-01

Summary:

Taking a cue from the late Dr. Martin Zweig, on his words during this broadcast, he was very hesitant to use the word ‘crash’.

So, this update is hesitant as well.

However, if the forecasted move of SOXX, to the Fibonacci projected 161.8% level (or more) is realized, it’s a decline over – 37%, from current levels.

It would be significant … crash or not.

Stay Tuned

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.

Russell … Rolling Over

Bearish Wedge Poised To Break Down

The Russell 2000 (IWM as proxy) has been congesting sideways for about five months.

While the overall markets, S&P, Dow, SOXX, IYR and the QQQs, have been moving on to new highs … the Russell has stagnated.

Taking a cue from Steven Van Metre’s reports on ‘who goes first’ in a downturn, it’s the small caps.

At this juncture, it looks like the Russell’s ready.

The six month daily chart of IWM below, shows choppy action.

Pulling back somewhat and labeling the bearish wedge, puts it into perspective (second chart):

Pulling out and labeling the wedge:

One item of note (not shown) at the top of the wedge, where price action pivoted lower (August 6th), is a Fibonacci 62%, retrace level.

So, we have a bearish wedge retracing 62% … along with non-confirmation of the overall highs; S&P, Dow, SOXX, etc.

Major reversals take a long time to form. However, once they get underway, it’s like a juggernaut to the bottom.

Harkening back to the oil (USO) bear market of 2014, nearly all (if not all) the YouTuber’s at the time, completely missed the bearish set-up.

What they did instead, once the downdraft started, was pump out update after update about ‘catching the bottom and setting up for the new bull market in oil’.

It never happened.

Oil continued lower for a year and a half before getting into a sideways range.

The big money’s in the big move. Monitoring the Russell provides confirmation a significant reversal’s in the works (not advice, not a recommendation).

As with biotech (SPBIO), already in a bear market, the IWM could break lower while the overall markets continue to thin-out and even make new highs.

Recall, we’re getting close to an up-coming holiday: Labor Day

The 1929, high was on the Tuesday just after Labor Day weekend.

Stay Tuned

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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.

SOXX: Testing The Top

12:03 p.m., EST

Underside Test of Resistance

The last update on SOXX, noted one thing missing was a new daily low confirming the reversal. About 15-minutes after that post, SOXX printed a new daily low.

Now, we’re in an underside test of the breakdown.

The daily close chart (above) shows price action coming back to the underside. This is how the market squeezes out risk of a short position (not advice, not a recommendation).

Yesterday’s update had a link to ZeroHedge about how the market ‘has to’ move higher this week; the ‘selling’ is finished.

A healthy way to view this type of information is to be aware of the source.

If it’s a major retail brokerage or trading firm, their own (internal) market stance is likely to be completely opposite their financial press release.

Let’s see what happens next.

We’re not looking to short the SOXX but it’s still an educational exercise to monitor the sector.

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.