July 30, 2019

 

On July 25th and 26th, a position in SOXS (going short the semiconductors) was established at a cumulative price of 38.19.

 

The expectation was for the gap up open in today’s session to continue into a full-blown breakout higher. 

 

It’s not happening (at least not today).  The trade was exited at the location shown … just before SOXS continued lower. 

 

Instead, what looks to be setting up, is a push higher in the semiconductor SOXX to test the all-time high.

 

That may transpire at the next session during the Fed announcement at 2:00 p.m. EST.

 

As these trades are executed, a feel for the market is developed for this period in time; summer 2019.  Each trade whether profitable or not, gives clues as to where to go for the best strategic opportunities.

 

With that in mind, natural gas (UNG) is in spring position … again.