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- Last Update: 25 February 2020, 16:57
The Artificial Intelligence revolution (the Industrial Revolution 4.0) is here and chips are at the core of it. The demand for chips will grow exponentially. The tech sector and especially semiconductors will continue the explosive grows: see the Human Progress chart 05. We are on the way to total automation, technological singularity and post-scarcity economy.
This ETF is very volatile and tradable. But buying and holding it works as well, or better especially when your portfolio grows to millions and you will face issues such as liquidity and taxes. Buying and holding would give you probably about 100% of annual returns or even more: remember this is 3x leveraged security. This ETF is the best balance of aggressive-diversified security. The holdings include cream of the crop tech stocks such as Nvidia, AMD, Intel, Texas Semi, Qualcomm, Micron, etc.
My charts and comments are for entertainment and educational purposes only.
Do not rely on them to make investment and trading decisions, perform your own due diligence.
Yearly High-Low analysis. This ETF is up 232% in 2019. The next year low is around $200.
Jun 4: Bought @113 - Jul 15: Sold @166
Sep 4: Bought @157 - Nov 4: Sold @221.
Nov 14: Bought @224, Dec 11; Bought @228 - Dec 12: Sold @247: too early, but it always comes back.
Dec 16: Bought small position of SOXS @22 (short inverse ETF) while SOXL was $264.
Dec 25: Perhaps selling will not start until the 1st quarter of 2020 to avoid 2019 capital gain taxes.
Jan 2: Daily BUY signal (chart 08). Re-entering SOXS @283 while retaining a small position in SOXS. When you end a year near its high, some momentum will carry over to the next year. At some point in the 1st quarter, we may go down very hard.
Jan 7: Sold @284 due to the Daily stop chart 08 and added to SOXS position @20.
Jan 9: Re-entered SOXL. Daily SAR signal reversed its direction 4 times in 8 days, which is rare: a lot of volatility. 3 false signals in a row make the 4th one much more probable, just based on odds. So I expect another 15% upside. When I look at many charts like chart 13, I can see that a major correction is very possible.
Jan 24: sold today at market open @329. It looks like an exhaustion gap and some type of mid-term top.
Jan 27: today both Daily and Weekly SELL signals triggered by the Parabolic SAR indicator (charts 5 and 8). Perhaps this is a mid-term correction.
Feb 14: Daily SAR buy signal is triggered a couple of days ago. The weekly signal is still in SELL mode.
Feb 24: Daily SAR sell signal is triggered today. The weekly signal is also in the SELL mode. If you look at charts 13-16, you can see we may have more of the downward movement. Investors use the coronavirus news as an excuse to take huge last year%27s profits. Otherwise, the economy is good and there is no reason for pessimism yet. Whether you are long or short now on SOX, don%27t close your position, unless it%27s profitable.
The exponential growth of semiconductors
4-hour sell signal
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