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SMH

SMH tests major resistance lineSMH approaches major resistance line after flash crash a few days ago SMH rallies to major resistance line 20 RSI remains below 50 which is a bearish sign that the recent rally is running out shorter timeframes show a dramatic drop in volume during the rally which is another bearish indicator August and September are historically bad months for the stock market I am expecting SMH to test the resistance line, possibly breakthrough then pull back before continues selling. Not putting on any trades, waiting for confirmation.
NASDAQ:SMHShort
by ratchet-mint
5
$SMH ETF Algorithm Momentum Indicator Started Accumulating on May 6, with our buy alert from our proprietary algorithm momentum indicator. ### Algorithm Momentum Indicator The Algorithm Momentum Indicator (AMI) is a sophisticated trading tool designed to identify the strength and direction of market trends. By leveraging advanced computational algorithms, the AMI analyzes price movements, trading volume, and historical data to provide traders with precise signals for potential buy or sell opportunities. #### Key Features: 1. **Trend Detection**: - AMI uses mathematical models to detect the initiation and continuation of market trends. - It helps traders identify whether an asset is in an upward (bullish) or downward (bearish) trend. 2. **Signal Generation**: - The indicator generates clear signals based on momentum shifts, alerting traders when to enter or exit a position. - Signals are typically represented by graphical elements such as arrows or color changes on the trading chart. 3. **Customizable Parameters**: - Traders can adjust the sensitivity of the indicator by modifying its parameters to suit different trading strategies and timeframes. - Customizable settings allow for fine-tuning to match individual risk tolerance and market conditions. 4. **Integration with Trading Platforms**: - AMI can be integrated with popular trading platforms like MetaTrader, TradingView, and NinjaTrader. - This ensures seamless usage and real-time analysis during trading sessions. 5. **Backtesting Capabilities**: - Traders can use historical data to backtest the AMI, evaluating its performance over various market conditions. - This feature helps in optimizing the indicator for better accuracy and reliability. 6. **Visual Representation**: - The AMI often includes visual aids such as histograms, lines, or oscillators to represent momentum. - These visual tools make it easier for traders to quickly interpret the indicator’s output. Benefits: - **Enhanced Decision Making**: Provides actionable insights that help traders make informed decisions. - **Risk Management**: By identifying potential trend reversals, the AMI aids in managing and mitigating risks. - **Versatility**: Suitable for various markets including stocks, forex, commodities, and cryptocurrencies. - **Time Efficiency**: Saves traders time by automating complex calculations and providing ready-to-use signals. Use Cases: - **Intraday Trading**: Ideal for short-term traders looking to capitalize on quick market movements. - **Swing Trading**: Helps swing traders identify medium-term trends to maximize gains. - **Long-term Investing**: Assists long-term investors in confirming trend directions for strategic positioning. The Algorithm Momentum Indicator is a powerful tool that combines advanced algorithmic techniques with practical trading insights, making it an essential component of any trader's toolkit.
NASDAQ:SMHLong
by AlgoTradeAlert
Opening (IRA): SMH 2 x July 19th 210/215 Short Put Vertical... for a 1.00 in credit. Comments: Part two of delta adjustment trade ... . Instead of rolling up the 205/215 short put vertical, I closed it out (See Post Below), and then re-erected a 2 x 5 to delta balance against my call side, whose short leg is at the -32 delta strike. This doesn't increase buying power effect, since the 2 x 5 is equivalent to the 1 x 10 on the call side. The end result is a 2 x 210/2 x 215/255/265 iron condor, -5.79/3.42 delta/theta on which I've netted 3.36 in credits.
NASDAQ:SMH
by NaughtyPines
Closed (IRA): SMH July 19th 189/199/275/285 Iron Condor... for a 1.17 debit. Comments: Mixing and matching profitable put wing with profitable call wing from iron condors put on at different times (See Posts Below) to de-risk running into NVDA earnings on 5/22. (NVDA is around 21% of SMH holdings). The resulting setup is a July 19th 205/215/255/265 on which I've collected a net 3.23 in credits; delta/theta -.28/3.45. I'll look at doing a delta adjustment post-earnings if necessary.
NASDAQ:SMH
by NaughtyPines
Opening (IRA): SMH July 19th 205/215/275/285 IC... for a 2.17 credit. Comments: An additive delta adjustment to the current SMH IC I have on. (See Post Below). With the original setup's short call aspect converging on -25 delta and the short put converging on +10, selling a skewed IC with the oppositionally delta'd short call/short put (i.e., at the +25 short put and the -10 delta short call) to bring back the position back to net delta flat with 63 days until expiry. 4.40 total credits collected with a current delta/theta of 1.02/5.81.
NASDAQ:SMH
by NaughtyPines
Opening (IRA): SMH July 19th 189/199/255/265 Iron Condor... for a 2.23 credit. Comments: A small engagement trade in the semiconductor ETF (31.5% 30-Day IV). Going somewhat wide here with the deltas, with the short option legs camped out at 16 delta on both sides. I generally like to collect one-third the width of the wings in credit for these, but am going a little more long-dated than usual, so want to give it a smidge more room to be wrong. The assumption here is neutral, with the bet being that it slops around between my short option strikes. I'll generally look to take profit at 50% max and/or adjust sides on approaching worthless or on side test. Metrics: Buying Power Effect: 7.77 Max Profit: 2.23 ROC at Max: 28.70% ROC at 50% Max: 14.35% Delta/Theta: .37/3.01
NASDAQ:SMHLong
by NaughtyPines
Opened (IRA): SMH May 17th 198 Monied Covered Call... for a 192.24 debit. Comments: Opened this in late Friday's session as it floated to the top of my IV screener with IVR/IV at 106/39. Sold the -75 delta call against 100 delta of long stock, with a resulting cost basis of 192.24/share. This is to emulate a 25 delta short put and to take advantage of call side IV skew while having "built-in" position defense via the short call. Will look to add at intervals, assuming IVR/IV remains high, generally taking profit at 50% max and defending via roll out of the short call. Metrics: BPE/Break Even/Cost Basis in Shares: 192.24 Max Profit: 5.76 ($576) ROC at Max: 3.00% ROC at 50% Max: 1.50% Variants: Short Put: May 19th 200 Short Put, 4.65 at the mid, 195.35 (cash secured), 25.70 (on margin). 2.38% ROC at max, 1.19% at 50% max for cash secured; 18.09% ROC at max, 9.05% at 50% max on margin (which is why you stick with the short put on margin; it's more BP efficient). Synthetic Short Put: May 19th 110/200 Short Put Vertical, 4.50 at the mid, 85.50 (cash secured), paying .15 to bring in BPE by more than half, 5.26 ROC at max, 2.63% at 50% max. This would only make sense in a cash secured environment from a BP efficiency standpoint; the naked short put remains more BP efficient on margin than either the covered call or the "synthetic naked short put" spread. Standard Short Put Vertical: May 19th 190/200 Short Put Vertical, 2.03 at the mid on BPE of 7.97 (both cash secured and on margin), 25.57% ROC at Max; 12.74% ROC at 50% max.
NASDAQ:SMHLong
by NaughtyPines
SMH breaks above its updward, reversal likelySMH has gone on a wonderful tear the last year and has recently showing signs that it is way overbought and due for a correction. From a 1W period we see that SMH has broken above year long upward trend. This is a first for SMH to do over the last year The ETF has gone through some notable contractions like from Aug - Oct of 2023. This occured without breaking above the trend. RSI 20 is now also for the first time showing that it has reached above 70 in over a year. We should expect a decent contraction or elongated pull back in time to correct fore this over purchasing it went through. Tighten your stop losses to protect against downside risk.
NASDAQ:SMHShort
by ratchet-mint