Five chipmakers form new ‘MANIA’ trade as SOXX tops 105% YTD; author points to SOXL and SOXS for hedging

The article argues that a new semiconductor-themed trade dubbed “MANIA”—MU, AMD, NVDA, INTC and AVGO—has emerged around the five largest holdings of the iShares Semiconductor ETF (SOXX). It says SOXX is up more than 105% year to date, but technical signals suggest momentum is fading as implied volatility reaches 62%, with an expected $125 trading range over the next three months. The author warns that the concentration risk could leave SOXX, and the QQQ that holds many of the same names, vulnerable to a pullback. It suggests using the leveraged ETFs SOXL and SOXS to hedge or adjust exposure.