SOXS is around 46.7 now. It surged 5 percentage points in a day, and within the last 4 hours it has flipped upward as well. The price is holding above the short moving averages—so it does look fairly strong.
But I won’t chase at this level. Yes, it’s really rising, but the money behind it isn’t worth the cost.
On the futures side, open interest increased by nearly 18% in a day—there is new positioning coming in. However, the buy-side share in active trading is still under half. In other words, the active order flow is actually more sell-heavy. To put it bluntly, the price is being pushed upward rather than being lifted by sustained buying.
Even more obvious are the big traders’ actions. In the large traders’ positions, the long side’s share has been squeezed down to a bit over 20%, and over the past seven hours they cut nearly 40%. When price goes up, large traders are instead reducing their long exposure. This divergence is an even stronger signal than the rise itself.
The spot market is also quiet. In the sampling window, the inflow of large orders was zero, and the order-book depth only barely shows slightly thicker bids. This rebound is basically propped up by the futures side; I don’t see real spot “cash and carry” buy-side follow-through.
With triple leverage, price swings are inherently amplified. The rebound supported by leveraged capital can also be given back quickly. So here I’ll stay on the sidelines—either wait for a pullback to see if someone steps in, or wait for spot large orders and large traders’ long positions to return before reevaluating. Chasing now has mediocre value-for-money.
#soxs $SOXS
But I won’t chase at this level. Yes, it’s really rising, but the money behind it isn’t worth the cost.
On the futures side, open interest increased by nearly 18% in a day—there is new positioning coming in. However, the buy-side share in active trading is still under half. In other words, the active order flow is actually more sell-heavy. To put it bluntly, the price is being pushed upward rather than being lifted by sustained buying.
Even more obvious are the big traders’ actions. In the large traders’ positions, the long side’s share has been squeezed down to a bit over 20%, and over the past seven hours they cut nearly 40%. When price goes up, large traders are instead reducing their long exposure. This divergence is an even stronger signal than the rise itself.
The spot market is also quiet. In the sampling window, the inflow of large orders was zero, and the order-book depth only barely shows slightly thicker bids. This rebound is basically propped up by the futures side; I don’t see real spot “cash and carry” buy-side follow-through.
With triple leverage, price swings are inherently amplified. The rebound supported by leveraged capital can also be given back quickly. So here I’ll stay on the sidelines—either wait for a pullback to see if someone steps in, or wait for spot large orders and large traders’ long positions to return before reevaluating. Chasing now has mediocre value-for-money.
#soxs $SOXS