As tempting as it is to buy TVIX, that product is fuckery. I like short semis here because of its tight correlation to the market. The trade is simple.
Hold until it breaks lower — or cover if the SMH breaks $105 to the upside. Since we’re up against resistance now, might as well take a trade that will mint coin if we reverse.
I like this idea. We are heading into earnings pre-announcement season. Bound to be some earnings warnings from this group–a few from the big names (TSM, NVDA, TXN, LRCX, AMAT, etc.) and we could see some carnage in this sector.