TSM looks great in the short to intermediate term. but in the long term it will be caught up:
technological edge will probably not sustained forever. mark liu's recent speech to the fab tools industry also hinted that the direction of the large fabs is to further automation and flexibility --- an operations edge instead, making them still bigger and more adaptive to customer demands.
as big as TSM is, liu's speech also underlined the daunting cost of advancing the technological edge. but there really isn't so much the tools industry could do to bring down the cost of moore's law of physics.
SMI will not be sitting at 130 making unprofitable DRAM and back projection TV devices forever. and SMI's cost of money is next to zero even before chinese government's most recent 5-year march order to innovate and compete with domestic intellectual properties. (but of course, it's highly likely SMI will take another blood bath at next quarter report, so don't jump on it just yet).
so don't bet on TSM to suddenly break away too far from the gravity, but enjoy it while it lasts for the coming quarters.
Agree with everything you say about fundamentals, unfortunately we're very overbought on the daily chart (which can get even more overbought, I know, but probably prudent to see if we can get a higher low on this retrace).
That's a very professsional scaling strategy, especially nice if you got your main position in the low $8. Profit taking I understand, but haven't done the systematic buy backs (guess that would work well on a strong up trend like recent rally).
You're right, though, that strategy requires cash and relatively large position, unfortunately I'm overtrading a small position so using a very tight stop.