A heads up to anyone who may have gotten bearish the Semi’s per recent analysis or taken the LRCX NFTRH+ short trade. SOX is close to the first downside target (per this post) today. That target was 605, and SOX is currently at 605.46.
I think the Semis are going lower, probably to the big picture support level of 540 to 560. But as noted I expect the market, now in bear mode if it does not somehow put on a miracle rally this afternoon, to try to bounce, perhaps early next week. That could help the SOX find temporary support in and around 600 +/- before it goes to 550. Or it could just gulp it all in one big mouth full.
But this post is an alert for traders that the first target has been met on the SOX. I have not yet evaluated whether to cover any, some or all of my shorts (LRCX, AMAT and MKSI). I have to look over my holdings and see how everything balances together (there are longs and shorts playing together peacefully so far). But your situation is different from mine and I want you to see the status clearly for your own purposes. No one ever went broke taking a profit, to parrot the old cliche.
Here is the updated SOX daily chart.
…and the weekly.