$Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ Not for the faint hearted. For me, it's one of the necessary steps to take in the times of uncertainty.
Many say this correction is just what it is, a correction. Perhaps so... But I can't be sure. That's the reason for this little insurance. I am slowly increasing this insurance, just gradually because if I do it too rapidly, when the bull resumes itself, the loss would also amplified. It's all about finding the right balance. So, I will always wait for this ETF to correct to a certain level before I add again.
The current bull market has been around for a long stretch. The US indices have broken ATH time and again. The magnificent 7 led rally has given way to AI rally, extending into supporting AI industry. Everyday memory, passive components, semiconductor wafers are suddenly so precious and/or valuable.
While playing along in this space, this rally just gets ever so fragile. Every little incident (US-Iran war, new US Federal chair's new direction uncertainty, US fiscal debt, runaway inflation and/or increasing interest rate hikes) is a good excuse for corrections to take place, some major, some minor. Before we know it, one of these might turn into a giant bear 🐻! A collapse... that has always been waiting in the wings.
Insurance is just part and parcel of the whole trade plan. Gold and other precious metals could be one form of insurance. The other is obviously to short the market... Which is what this counter is about on the semiconductors space.
This is not a financial advice or market direction predictor piece. It's just good to know that we have a choice.
@Daily_Discussion @TigerStars @Tiger_Academy
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