I’m going to start this week with my thoughts on the AMRX trade that I held from last week. It turns out that holding part of the position through the end of the day was a great decision. While the current price is still a slight loss, the stock was strong into the close and I think that’s a good sign. With that said, I don’t want to hold this trade all week. I will not take a full position in the trade for this week until AMRX is sold. My goal is to be out of AMRX today/Monday for a profit. The cost basis for the shares I currently own is $13.77. I’ll take $13.90 if I can get it.

Going into this week, the markets don’t look to be slowing down much. The markets closed yet another green week last week and closed very near the high of the week. We are sitting right at the resistance point where things turned around three other times since October 2018 but we are on a steady uptrend and I’m still expecting that we will eventually chew through this resistance.

This week, I’m watching SOXL. This is a 3x leveraged semiconductor ETF. Since this is an ETF, the earnings for the various holdings are at different times and most of them are out of the way this week. I checked the top 6 holdings that are in the SOXL portfolio and Intel (INTC) earnings are schedule for Monday. This makes up 5.6% of the portfolio, so it could cause a small move but nothing to be too worried about. Semiconductors have been very strong recently.

What I really like is that this ETF has been steadily holding the moving average line and it has a fairly linear upward trend. Unlike some leveraged ETFs, the difference between the high and low of any given day has almost always been less than 5% so I feel fairly comfortable buying a full position and will probably look to buy some options on a dip.

The 5-period simple moving average line from Friday is at about $128 on the daily chart (above).

The weekly chart (below) filters out some of the “noise” and it looks much more convincing:

I like that 5-period simple moving average line on the weekly chart as the support line going into this week. Friday’s closing price ($130.55) is probably a good price to buy at. Here’s my plan: I’m going to let the market open and see where this one goes. If it open’s almost flat, I’m a buyer (Probably as soon as my AMRX sells and maybe a partial position before that). If it gaps up, I’ll hang an offer out and look for it to dip down below where it opened. If it goes red, I’m going to wait until Tuesday to buy.

Good luck this week!