^SOX down 18%, S&P down 3% from highs
I have been saying for weeks now, that the SOXS(SOX underlying index) has been moving down at an exponential pace % wise vs the SPXS(S&P underlying index). In fact, the SOXS has moved down 6 times as much as the SPXS in the last few weeks. I noted weeks ago that the SOX had moved up twice as much as the S&P since Dec 25, 2018, and that with headwinds with 5G ramp up, trade war concerns, and PEs in the sector 75% above historic averages, I felt the SOXS was a much better risk reward. Question is, now that the S&P is up 23% since Dec 25, 18, and the SOX is also only up 23%, which do you pick from here on out if you believe the market corrects much more from here ?
I just(tuesday this week) made the switch from SOXS to SPXS, mainly for the 3 month lift on the Huawei ban, but also for the underlying index rise having pretty much caught up with the S&P rise since Dec 25,plus the SOXS action grating on my nerves. However now with QCOM losing the anti trust lawsuit yesterday, it's hard to say if the semis still come down at a much greater pace than the overall markets. If I had to guess, I'd say that the semis do still fall at a greater % pace than the S&P, but that it will be nowhere near 6 times like it was for the last few weeks.