That Time We Shorted (TSM) Taiwan Semiconductor Manufacturing - Analysis, Trade Recap!!

what’s this company this is taiwan

semiconductors we are not looking at the

us derivative but it’s the exact same

this is actually the raw shares on the

twse exchange i know that’s not even

some of your vocabularies but yes

other countries have exchanges

with different companies they use

different symbols as you can see up here

it says two three three zero

they use numbers over there

they use like are you even familiar with

that concept anyways this video was made

oh no it doesn’t have the date

character limit here let’s show you

look right after

again taiwan semiconductors how did

semiconductors do over the past six

months as a whole as a sector right

how did they do

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as you can see very extended rsi

show the chart show the chart

when when was that uploaded october 6th

2021 was probably live like a week

earlier we try to keep the highlights

like within a week of when the live is

being filmed like right now

cool we’re chilling

so how did that trade play out price

point let’s look at it price point

568

enter at around 600

that went through a reverse split

but but it doesn’t change anything it

doesn’t change anything so you would

have been right here

right here it went from 120 to 80.

it’s like 30 percent that’s a 30 moved

to the downside

you don’t want to be in that

you don’t want to be in that so from the

point of making that video reverse split

i know i know math is hard but right in

this price point

down 30 would have been like

somewhere right where this blue line is

right

very successful trade we actually made

money there crazy

now

again

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i might say it popped off

yeah

mid mid

um

shorter semiconductors now this wasn’t

again we’re not talking about a singular

company here this was an entire

sector

let’s go take a quick look

smh

boom

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right in here

right in here

short

tsm

amd

intel

all the videos are there

over the past six months we saw a

decline

38

this is not a company this is a major

market index again

a

move in a major market index can equate

into a gigantic move in its underlying

so we recognize the overbought nature

look rsi peeking out peeking out

since then touch the blue this is the

weekly 180.

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okay right back to where we left off so

as you can see

this wasn’t just a singular company

thing that this was

an entire sector that we recognized at

the time was very overbought instead of

potentially placing shorts on the index

which could have done very much could

have done uh that would have worked 100

electing to but find

underlyings in the semiconductor sector

aka

tsm for example

could have been amd could have been

anyone

could have resulted in a greater move to

the downside as you saw again

when an index moves down 20 percent it’s

underlying so the stocks for example

could go down 40. could you go down 60.

so

if you were shorting and wanted to

allocate money

you could short the index yes

probably a good move

but if you siphon if you sift through

all the under lags define which ones are

the absolute most bought the ones with

the lowest dividends the one with the

crappiest financials

and place your shorts in there knowing

that the whole sector’s about to have a

rough time you could potentially

get the most

from your short