The Semiconductor ETF (NYSE:SMH) continues to be strong after Apple (NASDAQ:AAPL) received some upgrades (semi's are the supply chain for iPhones). As SMH surges higher, a gap-fill looms large on the daily chart at $117.65. Once achieved, I plan on buying the SOXS (3x Short Semi ETF).
Correction Looms
I am a believer there is still weakening to go in the global/domestic economy and the semis are too expensive. With an overbought SMH and the technical gap-fill, this is the spot. I Look for as much as a 25% correction in most semiconductor stocks from this level.