SOXS current price is 43.3, down 20% in a single day.
This semiconductor rebound has indeed been fierce. Since SOXS is a 3x leveraged short, it was hit for 20 points in one day—six consecutive bearish candles, and the last three are even accelerating. Ever since it fell from 55, the downtrend has never stopped.
What’s interesting is that the open interest/position size hasn’t decreased—in fact, it’s risen by nearly 4%. People are still coming in despite the huge drop, which suggests there’s significant disagreement in the market. But the money that goes long semiconductors (and shorts SOXS) is still adding to positions.
On the order book, buy orders are indeed thicker than sell orders—around 43, there are buyers absorbing. The problem is that the lows keep getting pushed lower. Each time longs try to catch, they get trapped again. The 42.85 level is crucial.
Buying the dip here is basically betting that semiconductors will quickly turn around. But the trend is still on the long side, and the momentum hasn’t yet exhausted. Let it first hold its ground—there’s no need to catch a falling knife right this moment.
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