TBH, this was long overdue. We've been in this sideway movement for a while, but what we have now is earnings season of major tech companies and a very weak close on Friday. Not to mention that we're finally out of this trading range. So, likelihood of a drop and a retest of 630-640 is almost 100% now. A retest of 700-705 is possible, but VERY unlikely. This pattern would have worked perfectly last time, but back then the news saved everything. I definitely wouldn't't expect that now. So, what's better to short? You could short the index itself; the risk to profit is extremely good. But I'd personally recommend shorting some of AI/semis, as they are the most overbought and overheated sector atm. NBIS, IREN, INTC, AVGO, COHR, SKHY etc. Most of them will see a correction of 20-30% in the next few months. I have a decent short position in the first two and I think they will drop even more significantly after ER. As the saying goes - forewarned is forearmed.
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The week has only just begun, and most semis are already down 10% or even more. It's scary to imagine what will happen after ERs...
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.