【Chips: Bottom or Midway Down?】
SOXL, the 3x leveraged chip ETF, fell 40% in a week. U.S. stock markets are closed, but it’s still being actively traded on Binance.
On Binance bStocks, SOXLB fell from 79.58 on Monday morning to a low of 38.81 on Thursday, and was at 46.00 at 21:31. The SOXL contract had 24-hour trading volume of 3.8 billion U, more than four times that of SOL perpetuals.
Why it could be a bottom: The Philadelphia Semiconductor Index fell 12.2% on Thursday, its biggest single-day drop since March 2020. It closed up 4.21% on Friday, suggesting a wave of panic selling may have already passed.
Why it could be only halfway down: “Big Short” investor Burry closed only 25% of his bearish chip ETF options on Thursday, saying the remaining position was still sizable and that he remained bearish. The Nasdaq has now fallen for four straight weeks.
I’m leaning toward halfway down. In the first hour after U.S. markets opened on Friday, SOXLB surged to 49.70, then fell back to around 45 just an hour later. The rebound didn’t hold.
My plan is to stay out for now. A move back above 49.70 would mean my call was wrong, and I’d admit it and shift to a rebound outlook. If it breaks below 38.81, I’ll watch for the next leg down. With 3x leverage, moves in either direction are fast, so even if I do trade it, I’ll use a smaller position than I would for BTC.
Do you see this move as a bottom or as only halfway down?
Sources: Yahoo Finance, 24/7 Wall St., Binance data
#美股 #ChipStocks
📈 Top 3 contract gainers (21:31): $AIN +50.69%｜$IDOL +38.26%｜$LYN +36.15%
#BinanceSquare
⚠️ The above is a compilation of information and personal opinions, and does not constitute investment advice. DYOR.
SOXL, the 3x leveraged chip ETF, fell 40% in a week. U.S. stock markets are closed, but it’s still being actively traded on Binance.
On Binance bStocks, SOXLB fell from 79.58 on Monday morning to a low of 38.81 on Thursday, and was at 46.00 at 21:31. The SOXL contract had 24-hour trading volume of 3.8 billion U, more than four times that of SOL perpetuals.
Why it could be a bottom: The Philadelphia Semiconductor Index fell 12.2% on Thursday, its biggest single-day drop since March 2020. It closed up 4.21% on Friday, suggesting a wave of panic selling may have already passed.
Why it could be only halfway down: “Big Short” investor Burry closed only 25% of his bearish chip ETF options on Thursday, saying the remaining position was still sizable and that he remained bearish. The Nasdaq has now fallen for four straight weeks.
I’m leaning toward halfway down. In the first hour after U.S. markets opened on Friday, SOXLB surged to 49.70, then fell back to around 45 just an hour later. The rebound didn’t hold.
My plan is to stay out for now. A move back above 49.70 would mean my call was wrong, and I’d admit it and shift to a rebound outlook. If it breaks below 38.81, I’ll watch for the next leg down. With 3x leverage, moves in either direction are fast, so even if I do trade it, I’ll use a smaller position than I would for BTC.
Do you see this move as a bottom or as only halfway down?
Sources: Yahoo Finance, 24/7 Wall St., Binance data
#美股 #ChipStocks
📈 Top 3 contract gainers (21:31): $AIN +50.69%｜$IDOL +38.26%｜$LYN +36.15%
#BinanceSquare
⚠️ The above is a compilation of information and personal opinions, and does not constitute investment advice. DYOR.
