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- Last Update: 27 January 2020, 18:15
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. Will it go up or down first? ))
Sept 4: Buy @157.
Nov 4: Sold @222.
Nov 14: Bought back @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). Reentering 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 5: Watch for Parabolic SAR sell signal. The daily stop is @267 chart 08. 4-hour stop @270 Chart 09. 2-h stop @273. We are very close.
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. This ETF is a rocket and the growth may be, in fact, exponential. I was too careful last year closing positions too soon, trying to preserve money which I more than doubled and missing on buy and hold the opportunity to make even more. Oh well, I can%27t complain and we have to be careful because the downfall of this 3x leveraged ETF would be ugly. 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. Apple earnings tomorrow though could make the impact on the market in either direction. SOXL has already corrected 60 points just in 2 days!
The exponential growth of semiconductors
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