SMH – Your Bullseye Pick of the Week - Bullseye Pick of the Week
My Trade Details:
- SMH Apr 6 2023 $260 Call near $4
- Stop: Close below $235
- Target 1: $255
- Target 2: $265
Here was my reasoning:
The single strongest sector I see right now is semiconductors. My favorite would be NVDA, but that has already made a big move. This week, I am going to bet that the whole semiconductor industry stays strong, and I am looking to buy calls on the ETF for that sector – SMH.
On SMH, I plan to look to enter the trade today on a dip if we get it. I am not in a hurry to chase any stocks in this market. I am confident that waiting on the price I want will be better than chasing something to buy at a level I am not comfortable with.
I also plan to add to this position on a dip following the Fed announcement on Wednesday this week (it is @ 1pm EST, so make a note).
Keep a close eye on VIX and also TLT as they will likely be signals of where the market is headed. I’ll break that down in more detail later today.