Below is the SOX semiconductor index as of a few weeks ago. It was gorgeous. Amazing. Shortable. Just itching to crumble. That’s why I wouldn’t shut up about it.
This is the same thing today. It’s weak today. I am short SMH and doing well. HOWEVER, this thing is a pig compared to what it was. It isn’t clean anymore. Not pristine. Not textbook. It has gone from an A+ chart to a B-/C+.
It’s a damned shame, too, because my SMH puts are doing great now, and I do not own them anymore. Further, it is entirely within reason that this thing is going to collapse under its own weight. Yet I cannot compel myself to plunge into this aggressively with such a sullied pattern. Thus, I play it safe, boring, and less profitably, with my simple short setup.
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