Sometimes the most profitable trades are the simplest. This may be the case here with the semiconductor sector following a eurphoric pop on Texas Instruments Incorporated (NASDAQ:TXN) following earnings. The sector had already been soaring and this added to its meteoric rise. So why is it a short? First, euphoria. Rallies always end on total greed. The chart of the $SMH has rallied from $53.00 to $63.00 in a month. The next reason is the most powerful and most compelling. On the monthly chart of SMH there is a trend line connecting the high from July 2007 to June 2015. That trend line was tagged today. Every time this trend line has been touched there has been an epic top and mammoth pull back in the SMH. It should be no different this time. I am buying puts but another way to play it would be to short the SMH or buy the $SOXS.

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Jenny Rebekka