July 31, 2026

By Nigam Arora

To gain an edge, this is what you need to know today.

Semiconductor Rally

Please click here for a chart of leverage semiconductor ETF (SOXL).

Note the following:

• Semiconductors are the leading sector that drove the stock market higher.  SOXL is the momo crowd’s favorite semiconductor ETF.
• The chart shows a massive rally in semiconductors yesterday.  In yesterday’s Morning Capsule, we wrote:

The chart shows selling in SOXL yesterday was on heavy volume.  The reason for the heavy volume was that many momo crowd accounts were hit with margin calls and were forcibly liquidated.

• The heavy volume shown on the chart the day before yesterday resulted in exhaustion of selling.