Semiconductors Storage Technology (STX) is up $80 on earnings this morning, while Micron Technology (MU) is up $90 on the day before earnings. Just as Avis (CAR) ran inexplicably from $170 on April 1st to $847 just 22 days later, only to be trading back at $170 today, these semiconductors are destined to give a big chunk of their respective advances back, any day now. Accordingly, the current SOXS June $20 Call trade is subject to dollar cost averaging by adding to calls on dips like today. I personally will be adding to my position around these levels, which coincidentally is where I initiated my SOXS call position last week. There are 50 days left to expiration and it will only take a couple of bad days in the sector for these calls to soar. SOXS 240 Minute SOXS June Calls Note: 5 of 7 MAG seven stocks are reporting today and tomorrow AND a Fed meeting is taking place today. There could be some more "dip" coming in the next 24-48 hours, or today could be the Wave 2 low. In either case, what comes next, in the weeks ahead, should be a dynamic third wave higher for SOXS. SOXS 30 Minute One potential EW scenario: Waves 3 to 5 coming. A breakout above Wave 1 high @ $16.28, should be bought with both hands. Big Oil We have some huge gains this year in XOM and CVX, what I refer to as "Big Oil." We also have a classic Wave 5 Buy Signal on the Intermediate Term CVX chart below: CVX - Wave 5 Buy Signal Its time to put some of those huge gains back into June CVX calls. This trade is especailly sensitive to geopolitical headlines, i.e., "overnight risk," so I would go easy on the size here. It makes waking up in the mornings easier on the anxiety scale. We had bought these June $200C in the Premium Service, so if still holding, no need to add here. If not, an initial position is warranted out of respect for the Wave 5 Buy Signal. This position hit its trailing stop @ +233% earlier this spring.
