Recently, many people have been asking Cai Bao the same question: Bulls will never be slaves! Besides Sandisk and Hynix, what other U.S. stock tokens are worth positioning in? Here’s my own watchlist: $SOXL
Why is Cai Bao choosing to go long semiconductors at this time?
SOXL itself is a 3x leveraged long semiconductor ETF. During this period, it has been repeatedly sold off by the AI bubble, regulation, and macro headwinds, and the decline has already been quite dramatic. Market bearish sentiment is already very strong.
But Cai Bao instead feels that opportunities are born in fear. Retail investors panic and cut losses, then turn around and chase shorts. When the market starts to cascade, it instead gives large funds a chance to accumulate at low levels. The major players use the negative news to spike prices up and down, shaking out both bulls and bears.
More importantly, although negative news has kept coming lately, the price action clearly can no longer be pushed down. CPI data was bearish, and Old Huang’s news also failed to set a new low. So Cai Bao believes that negative news should not be judged only by the headlines, but more by how the chart reacts.
When bad news at low levels can no longer push it down, it may mean all the bad news has already been priced in! Right now SOXL looks more like a bet on an oversold rebound. If the semiconductor sector stabilizes, the rebound elasticity is worth expecting, but with 3x leverage, position sizing must be controlled!
So this round, Cai Bao is leaning more bullish, with a short-term target of more than 5%!
Why is Cai Bao choosing to go long semiconductors at this time?
SOXL itself is a 3x leveraged long semiconductor ETF. During this period, it has been repeatedly sold off by the AI bubble, regulation, and macro headwinds, and the decline has already been quite dramatic. Market bearish sentiment is already very strong.
But Cai Bao instead feels that opportunities are born in fear. Retail investors panic and cut losses, then turn around and chase shorts. When the market starts to cascade, it instead gives large funds a chance to accumulate at low levels. The major players use the negative news to spike prices up and down, shaking out both bulls and bears.
More importantly, although negative news has kept coming lately, the price action clearly can no longer be pushed down. CPI data was bearish, and Old Huang’s news also failed to set a new low. So Cai Bao believes that negative news should not be judged only by the headlines, but more by how the chart reacts.
When bad news at low levels can no longer push it down, it may mean all the bad news has already been priced in! Right now SOXL looks more like a bet on an oversold rebound. If the semiconductor sector stabilizes, the rebound elasticity is worth expecting, but with 3x leverage, position sizing must be controlled!
So this round, Cai Bao is leaning more bullish, with a short-term target of more than 5%!
