SOXL is currently around 148. For the triple-leveraged product, volatility is naturally much higher.
First, the call: the direction has turned bullish, but I won’t chase this green candle.
This four-hour move has been quite clean. It went from 144.9 all the way up to 148.57, slicing straight through the range that had been grinding all day before it. In the 15-minute window, the 20-line and 50-line have both been flipped underfoot, and the price is running right along the 24-hour high.
On the spot order book, the buy wall is about 50% thicker than the sell wall, and the spread is paper-thin. On the spot side, it’s true that people are absorbing.
But the issue is here: with a push this aggressive, in the futures market, active trading is still seller-dominant. The buyer’s share is even less than 42%. Over 7 hours, active volume more than doubled—but all of it was during the upswing, while someone kept slamming it down whenever it tried to rise. Open interest hasn’t really come up with it. Big accounts are reducing longs, yet positions are still being added to; the signals are also at odds with each other.
To put it simply: the location is a breakout setup, but the capital hasn’t caught up. The next reference above is the high at 148.74. Chasing in here generally offers mediocre odds—when the triple leverage pulls back, it won’t ask your permission.
My approach: watch for the trend to turn bullish, then only act if it pulls back to around 146 and can hold steady, or if active trading flips back to buyer dominance. Don’t chase the highs.
#soxl $SOXL
First, the call: the direction has turned bullish, but I won’t chase this green candle.
This four-hour move has been quite clean. It went from 144.9 all the way up to 148.57, slicing straight through the range that had been grinding all day before it. In the 15-minute window, the 20-line and 50-line have both been flipped underfoot, and the price is running right along the 24-hour high.
On the spot order book, the buy wall is about 50% thicker than the sell wall, and the spread is paper-thin. On the spot side, it’s true that people are absorbing.
But the issue is here: with a push this aggressive, in the futures market, active trading is still seller-dominant. The buyer’s share is even less than 42%. Over 7 hours, active volume more than doubled—but all of it was during the upswing, while someone kept slamming it down whenever it tried to rise. Open interest hasn’t really come up with it. Big accounts are reducing longs, yet positions are still being added to; the signals are also at odds with each other.
To put it simply: the location is a breakout setup, but the capital hasn’t caught up. The next reference above is the high at 148.74. Chasing in here generally offers mediocre odds—when the triple leverage pulls back, it won’t ask your permission.
My approach: watch for the trend to turn bullish, then only act if it pulls back to around 146 and can hold steady, or if active trading flips back to buyer dominance. Don’t chase the highs.
#soxl $SOXL