The semiconductor stocks ETF (SOXX) is confirming a likely pullback for the week ending September 29, 2017. If semiconductors do pullback next week, we will be setup for a sweet trade where we go long semiconductor stocks in mid-October.

Trends in the Internet of Things and AI have captured consumer demand. FANG and other tech giants are dominating everything. While Microsoft, Google, and Apple get all the attention, it’s the semiconductor manufacturers that are quietly having a very strong year. SOXX is up more than 27% so far in 2017 which is more than double the performance of the S&P 500.

Zacks published this bullish article on the semiconductor sector.

Semiconductor Stocks

Semiconductor stocks ETF SOXX predicted pullback for week ending September 29, 2017

The market prediction for SOXX is that we get a pullback next week and test the $152 support area. SOXX then does a sideways choppy move until mid-October. If this happens, SOXX will be set up for a sweet swing long trade sometime around mid-October where we go long and hold until early December and then sell and take profits. This trade in SOXX is one of the most accurate seasonal trades on the planet but of course it doesn’t always work. It works about 75% of the time. Not comfortable with a 75% probability? Good. Here is a lesson on trading outside your comfort zone.