SOXL - Trading on channels and signals

Alright folks here we go:
-SOXL is a 3X leveraged ETF tracking Semiconductor Stock.
-The unleveraged boring version ETF is SOXX.
-I could list the holdings here but that is pretty much irrelevant.

Basically this thing is:

For this forum post:
-SOXL only charts

Why do I like trading this?:
-Potentially huge gains timing puts and calls correctly
-Can swing 10%+ in a trading day
-Seems to respond well to TA
-I am looking for the kind of gains you can get from meme stocks with something a little bit more predictable based on macroeconomic conditions and risk on/risk off stock movements
-SPY correlation can be a pain but also an ally if you use it correctly

Long story short:
-For trading to be worth my time I really need to make a solid chunk of cash doing it and this is my latest attempt at finding a stock/ETF I can really sink my teeth into. It is basically a leveraged SPY with a tech/risk on twist to it so LFG!

Here is the Heiken Ashi Chart for the last couple years:

-We can see that you can easily draw 4 distinct channels on chart
-The last two channel breaks were clear as day



Interesting, how correlated to SPY is it? I’ve been playing SPY calls when it’s looking bullish but gains are somewhat muted by its stability. I may try calls / puts on SOXL if the correlation is strong.


Still working on that part of the DD. Patience is key with this, will always be waiting for it to get to the channel edges.


I really, really like what this ticker has done every time it’s hit this price within the past year and a half, especially after a downtrend…I have some 5/20 35c, and may possibly go in for some more 5/20s closer to the money if possible; but PM just opened with a gap up, may be seeing a nice bump in contract prices today :+1: Deciding on grabbing some more/averaging up/re-entry will be on my mind today for sure depending on what we see, the semis and war connected plays have a lot of my attention currently


This can be a Good Friday entry.
Great write-up, Jekyll!


The green and red arrows from the script did a good job calling out a channel break


My LuxAlgo script just printed a strong buy on the 1 hour chart and the price briefly jumped above the red 50EMA

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I’ve been reading on this in your posts and seems to be an excellent tool. I’m in SOXL currently and looking to average down. I see here that it is a strong buy. Is this as of close today (4/18)? Wondering if this can quickly change at open if it gaps up in pre-market.


Ascending Double Bottom on the 4hour candles…

Might be a good short rally for the rest of the week, unless FOMC kills it.


I’ve been trading SoXL for quite a while…
Due to the semiconductor issues mostly been playing puts but I expect a rebound. Looking for an entry to park my cash.

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Wow this is a big day for SOXS. AMD doing great but even they predicting lower numbers. Is market taking NVIDIA’s guidance and Micron’s news today as severe reposition for semis? As well as the Taiwan blockade(?)

Also some shower thoughts is people working 2nd jobs just to pay rent despite whatever the job numbers say, also heard labor participation is down. Not sure people will be spending lots on servers and PCs this year with companies cutting costs and people barely making rent

The new intel chip looks to be running very hot, it’s like a nuclear reactor in your PC. And intel is America’s last hope against TSMC which is from what I hear either more and more in bed with China every day or having severe industrial espionage done against their processes (and eternally may get invaded - I think Russia’s war goes to show that big world events are back on the menu and these countries aren’t all just bark) Intel factories won’t be up and running for year(s) as well…