Chips Top, Maybe

SMH reached the lower end of my target range. MPWR surged on earnings news. The latter is heavily exposed to China with sales, plus it's entire supply chain bottlenecks in China with chips made in Taiwan and South Korea, along with those made in China, flow through Chengdu. MPWR does not have liquid options. If SMH gets to the $250 to $255 area, about a 50 percent retrace and at the late April high, that would be where I'd be looking to heavily short assuming nothing has changed with the macro picture.

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