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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, so for the long term investment, it is pretty safe.
You will not get a margin call on this ETF so you do not have to sell it at loss. And you do not pay margin interest on this, yet you get 1.5 more leverage versus regular margin.
Forget gold and energy stocks: they are cyclical and mostly move sideways. Semiconductor ETFs, on the other hand, are the best investment vehicles.
This is a QUARTERLY chart: each bar is one quarter: I love this simple visualization of time/price.
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.
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. 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.
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 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. Investors use the coronavirus news as an excuse to take huge last year%27s profits.
Feb 28: sold SOXS and bought SOXL @174.
March 18: Made an intraday play on SOXS. Added more to SOXL. It will take us a couple of years to recover to all-time highs. But the exponential growth of semiconductors will resume.
March 24: Daily BUY signal: chart 8. There are two indicators of the cessation of panic and hysteria today: toilet paper is available in the store and the rise of stock market. Well, when can you still earn 46% in 2 days.
April 1: short term sell signal. First we go down again before we going up. And there is a lot of money to be made on the upside.
The exponential growth of semiconductors?
It will take us a couple of years to recover to all-time highs. But the exponential growth of semiconductors will resume.
Monthly sell signal
4-hour sell signal
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