SOXX trade ideas
Early earnings blowouts point higher for semiconductorsWe've now had a blowout earnings report from $MU, in which EPS beat by 11%, sales by 3%, and guidance by 24%(!). We also got guidance from XLNX yesterday that suggested its revenue will be about 5% higher than previously expected, above the high end of its previous range. This suggests that analysts are underestimating the sector's performance as we head into Q2 earnings season in mid-July. It also suggests that semiconductors will have far more forward visibility than most sectors, with 100% of companies so far providing guidance.
Semiconductors usually are one of the strongest sectors on earnings, beating estimates at a much higher-than-average rate. Amidst the pandemic, there's been strong demand for mobile, home computing, and datacenter usage due to people working from home, so the sector has performed well. Granted, these stocks mostly aren't cheap; but investors are paying premiums for a reason. I expect the sector will outperform through the end of July.
Those who've been following my posts know that my positioning is mostly defensive: I'm heavy on utilities and consumer staples. Semiconductors have the virtue of being a bit defensive, in that they're relatively insulated against pandemic impact, while also having extraordinarily high growth potential. Historically, SOXX has considerably outperformed the S&P 500.
SOXX 47% profit on 2nd COVID-19 market dropLong -term investment idea for ETF SOXX on potential 2nd COVID-19 market drop.
SOXX 47% profit / Long trade 182.98 -> 269.57 / TrailStop 26.32 (Trailing Stop with _ below the market).
Profit: 47%, Risk: 23.5%, Risk ratio = 1/2
Allocation: 15% of the portfolio
All equities from our ideas was fundamentally checked and have good ratios (P/E, Debt/Equity, Sales past 5Y, Profit Margin) together with strong long-term up trends.
Stay tuned with more ideas and market signals with our Telegram-bot.
$SOXX - Keeping the price inside the yellow Channel is ok, butWith breaking the lower side, 243.19 is a critical support.
Good-luck
Not for a suggestion.
LONG SOXX - Levels to WatchNow I'm at what appears to be strong resistance. Needs to close above red line for long thesis to continue. Otherwise, I'm expecting a pullback down to the dotted line. Passing through the dotted line my stoploss triggers.
SOXX / SPY with moving averages for market timingBuy at golden cross, sell at death cross using the 200 SMA and 50 SMA daily.
