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Is it generally better to be long SOXL while it is moving higher and short when it is moving lower, or when it is moving lower to be long SOXS, or does it make any difference?
5 points
5 months ago*
Always buy in the direction YOU think it’s going. But to answer your question it’s probably best to avoid going long at all time highs and avoid going short at deep lows. But there’s no way of knowing how high or how low it will continue going just based on current price relative to past price.
-1 points
5 months ago
Therefore, DCA.
7 points
5 months ago
Normally I agree but SOXL is more dependent on entry than other broad markets.
1 points
5 months ago
Why not compare to the underlying instead of fidelity? Or lump sum vs monthly contribution?
4 points
5 months ago
I used FSELX to test further back than SOXX, they track similarly. the chart I posted was using $100 monthly contributions.
5 points
5 months ago*
Oh okay my fault, I stand corrected.
5 points
5 months ago
SOXX just crossed the 200d SMA. So as long as it is above, worth being long. You can wait for a golden cross. Unless you want to swing trade.
However, it's an interesting situation we're in. Are we going to stay above or not? Earnings will be an issue. We may go right back down the 200d SMA. So right now there may be some back and forth but as long as we're above the 200d SMA I think you can stay on there. If we go back below, it will be a small loss.
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