Asia tech stocks crumbling on Wall Street contagion — short SoftBank
Thesis
SoftBank is heavily exposed to the AI and tech startup ecosystem, which is highly sensitive to interest rates. With bond traders now betting on aggressive Fed rate hikes, the expensive valuations of tech companies are under severe pressure. The 10% overnight drop in Asia shows panic is setting in, meaning the selling momentum is likely to continue as US markets open. Shorting SoftBank or semiconductor ETFs is a direct way to play this global flight from risky tech stocks.
Strategy approach
Build a trend-following short strategy for SFTBY (SoftBank ADR) on the Daily timeframe. Enter short when the 5-day EMA crosses below the 20-day EMA and the RSI(14) is below 40. Exit the trade if the RSI drops below 20 (oversold) or if the price crosses back above the 20-day EMA. Use a 5% stop loss.