SMH relative strength

Discussion in 'Trading' started by Trend Fader, May 6, 2004.

  1. Superb relative strength today. If the market is gonna bounce back I bet semis will lead. SMH has all the signs of a tradable bottom in place. Nasdaq also at key 200ma.. if we are gonna bounce up.. we have to do it at this level.. otherwise the bottom will fall out.

    I am long SMH right now.. will buy more if we close in plus. This is a 1-3 day trade. Looking for a 1-2$ gain... I will be using a 75 cent stop.

    If SMH breaks 36.25 tomorrow.. i will buy more. It should be good for atleast 1 point pop.

  2. so far so good...
  3. SMH continues to lead the market.. I am heavily long...

    Will scale out for profit soon.

  4. dbphoenix


    Actually, the S on the Naz is found at the last swing low. The 200MA is incidental. As for the SMH, it's in a confirmed downtrend, so by definition it won't be "leading". This is not to say, however, that bulls can't push it back to resistance.
  5. It will be leading the bounce off the relative low.

    The trade is right on the money. Up over $1 already.



    Nice trade.
  7. Thanks bro.

    I locked half profits at 37$. Stop at b/e gonna let her run more.
  8. dbphoenix


    The quickest profits can be made off these bounces if played correctly. However, it's best not to make more of it than it is. The bounce in and of itself does not alter the trend.
  9. I know what u are saying.. but thats the beauty of ETF's and playing sectors. I clearly stated 1-3 days on the trade as profit target. 3 days would probably be optimal.

    My trade was a technical/fundemental catalyst driven trade.

    I knew the jobs report would be in the 200k's all other data was pointing to a strong job report... yesterday SMH held very strong into the selling... stock was basing at its relative low. It was very oversold and ripe for a bounce.

    One thing for sure.. If a market is putting in a low and might have a fundemental catalyst to push it up.. i dont care if its in a confirmed uptrend or downtrend.. doesnt matter to me.

  10. I closed out the trade for a decent profit... All major markets closed at their lows.. spooked me out.

    #10     May 7, 2004