$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ My target for SOXL this week is in the 237-245 range, and I see at least four potential catalysts. Of course, the narrative depends on market makers, not me or any retail traders.
First, core CPI could be hot but likely in line with market expectations. The market has already priced in the worst, and everyone knows inflation is coming. CPI has already been revised to reflect the oil price increase, so any "in-line" narrative could be very helpful for a sudden rally tomorrow. I previously broke down sector expectations for CPI.
Second, Oracle earnings. As one of the top four AI hyperscalers, Oracle will likely talk about explosive chip and data center demand, and CAPEX expansion. That could spark a semiconductor rally similar to what we saw after Meta, Google, and Microsoft confirmed demand during their joint earnings about a month and a half ago, when SOXL jumped over 40% from the $90s to the $130s in two days.
Third, a technical rebound could trigger another wave of retail FOMO after the panic. The fact that today closed at the highest point since the sudden panic dip further validates my view that a technical rebound could be due imminently.
Fourth, TSM's May monthly sales report is due tonight PST. This might again confirm demand and show AI on an explosively growing trajectory.
This is my interpretation of facts and upcoming events, not financial advice. It is imperative that you conduct your own thorough research.
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