Semiconductor ETF buySMH Semiconductor ETF is at a major support trendline (white dash) and EMA377 (blue line). SMH is a screaming buy now. Technically speaking, there is essentially no downside risk and plenty of upside reward at this entry point. Computer chips, also known as semiconductors, are the brains of products like smartphones, computers, cars, medical devices, digital cameras, TVs, washing machines, refrigerators, every appliance, LED bulbs, ATMs, trains, planes, the internet, communications, pretty much everything..
WASHINGTON, April 6 (Reuters) - The White House held a classified briefing on Wednesday with some U.S. lawmakers on the dire risks to the American economy from semiconductor supply chain issues as it pushes Congress for $52 billion in funding to subsidize production.
Do your own due diligence, your risk is 100% your responsibility. This is for educational and entertainment purposes only. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Good luck and happy trading friends...
*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, capital risk management
Beware of analyst's motives
Emotions & Opinions
FOMO : bad timing, the market is ruthless, be shrewd
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors, no adaptation
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big, organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
TTC - trend channel
AlertiT - notification
tickerTracker - MFI Oscillator
www.tradingview.com
SMH trade ideas
4/24/22 SMHVanEck Semiconductor ETF ( NASDAQ:SMH )
Sector: Miscellaneous (Investment Trusts/Mutual Funds)
Market Capitalization: $ --
Current Price: $234.73
Breakdown price (hold below): $237.35
Sell Zone (Top/Bottom Range): $241.85-$261.90
Price Target: $206.40-$204.00
Estimated Duration to Target: 67-72d
Contract of Interest: $SMH 6/17/22 200p
Trade price as of publish date: $4.35/contract
Opening: SMH May 20th 215/280 Short Strangle... for a 5.30 credit.
Comments: Selling some nondirectional premium in semiconductors (implied volatility rank 60/30-day 41.2%) in the May monthly (42 days 'til expiry). 5.30 on buying power effect of 24.94 (on margin); 21.3% ROC at max as a function of buying power effect; 10.6% at 50% max.
Semi's attempting to break through resistance,what does it mean?The Semiconductor ETF SMH is meeting resistance here @ 260. The last several times the SMH index ETF met this trend resistance has resulted in a push to lower lows. Could this time be different? The MFI (Money Flow Index) seems to be suggesting it is a possibility. Although SMH is riding a downtrend, SMH price volume momentum is in overbought territory. A SMH break and close above 260 on a daily basis would end the SMH down turn. The next important area to watch would be 266. 266 is where major resistance resides. This is evidenced by the significant battle between bulls and bears previously waged there noted in Volume @ Price. The last time @ 266, the bears got the better of the SMH bulls. However, this SMH MFI is trending higher as opposed to lower. This is a canary in the coal mine to watch as this battle could have repercussions as to the future direction of the broad market trend and ensuing market leadership.
The sparrow may be small but its vital organs are thereRead news here , about this ETF here and here
This is a Chinese idioms -
má què suī xiǎo , wǔ zàng jù quán
Many finished goods like mobile phones to automobiles looks sleek,elegant and nice from the outside. But like the sparrow, the chips though small contain all the vital organs that drives the function of the mobile phones and the cars. Without it , it is useless. And the article above clearly shows us the global demand for it will only INCREASE over time.
For more than a decade since year 2001, this ETF was hoovering under sub 50 dollars price level. It was only in Jan 2015 that it finally breaks out of 50 dollars and the last 6 years has been nothing but spectacular performance. If you had bought it at 50 dollars and hold this ETF till now, you would have made nearly 5x the returns.
But had you not, fret not, here is another buying opportunity for you. A bullish engulfing candle and a breakout of the resistance at 243 price level would be a good entry point.
#SMH and all semi plays#SMH is seeing increased bullish volume ( blueish nodes ) compared to bearish volume ( orange nodes ) on the volume profile sitting on a great spot ontop of a volume shelf with plenty of room to push to the top side if we can keep this trend so far don't dive into plays in current market ease into them to manage your risk as best as possible
$SMH Bear Flag, Dip & RipSMH has sold off through the median of the pitchfork with more volume than the uptrend (Oct 21 to Nov 21). There is a likelyhood that we are doing "as above, so below" pattern where the price rejects the upper channel, supply exhausts, then comes back down to mirror down below to look for demand.
As of now SMH is hammering near the outer channel. I'll be looking for a low volume bear flag where bulls try to drive the price up just beyond the gap fill. Shortly after it'll be key to watch the bears step in and drive price down to 252.
After a bit of accumulation, should we continue to stay in this trend (since COVID) I can see the price quickly moving back to the median shortly after options expiration in Feb.
$SMH demand zoneIn a demand zone, near the 200d ma at 270. Looking for a bounce around there. Calls above 282 for confirmation of a shift in trend. With $TSM ER beat 2 weeks ago and $INTC/$TXN/$LRCX/$XLNX ER runup this week, could be a catalyst for a bounce at these levels. Inverted hammer not looking so pretty though.
$SMH Semis Breakout RetestSMH Breakout Retest of 313, needs confirmation . Failure expect a move back in the box to the 300 zone.
Given the bullish seasonality and technical confluence (MACD cross and RSI uptick), bias is to the upside with $325 and $332 price targets.
I'm long JAN $315 Calls, 30% stop.