$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ Look at the volume from late last night. It's unusual to see that level of activity at such an hour. Chip stocks have a lot of long-term growth potential ahead. So who would be trying to push them down? It seems like some market participants might be. Basically, nearly every major analyst has a long-term bullish outlook on the sector, with several stocks appearing undervalued. So who would want to short that? This isn't about risky subprime mortgages. It looks more like some institutional players who might have gotten too aggressive with their hedges and are now in a tough spot on their put positions. They could be trying to salvage those positions before the broader uptrend in chips resume
I'm looking at this as a potential buying opportunity. Nasdaq futures (NQ_F) are down about 720 points. We've seen the Nasdaq swing plus or minus 1,000 to 1,200 points on a single volatile day recently. From today's high, it's dropped roughly 1,000 points. On days like this, selling often continues into the close, but I've also seen meaningful rebounds in the last 30 to 60 minutes. Right now, we're about -5.5% from the all-time high. Back in the second week of June, it dropped to -8%, and to -6% in the fourth week. Both times, it staged a strong rebound from those levels. I'm watching for a similar reversal somewhere between the -6% and -8% levels. The market seems uneasy with the massive hyperscaler spending. However, in their defense, customer demand is still far exceeding current AI com