The last post about SSG (Ultra short SMH) I talked about the key level for getting in SSG would be between $19.50 and $20.50 based on my SMH analysis (Click Here) ! My intermediate term target rermains $26 !
When to reload on the short side in Semis ? SSG (Ultra short SMH) is the double short of SMH ! In the last post on SMH on January 13th (Click Here) I suggested shorting more with a price target of $25.5 ! The call was pretty close ! What's next ? I think that the red fibonacci line at $25.67 is a level where you would turn to SSG and start adding more positions ! The key levels for buying SSG would be between $20.50 and $19.50 in the next two to three sessions. My intermediate term target (two months roughly) for SSG is around $26 ! This is when SMH will have retraced 50% off the March lows and would have filled this huge green gap ! When we get there I will suggest some USD (Ultra Long SMH) but one step at at time .....
Yesterday's action in SMH (Semiconductor Holders) showed a gravestone pattern which consists of a long Upper Shadow and no Real Body. The Gravestone indicates that the prior trend is about to end and may reverse or move sideways. The Gravestone is mostly seen as a top pattern indicating the end of an uptrend. This pattern is an indication of a financial instrument's short term outlook. On August 28th I have made a post concerning the potential top for SMH at $26.5 (Click Here) and suggested buying SSG (Double short SMH) when SMH was to hit $26.5 ! Well , we got to $26.45 yesterday .. mighty close isn't it ? I believe SMH can pullback to at least $24.5 in the short term.
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