$Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$ ...
$Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$ Let's go, brothers and sisters! I wish I had bought more.
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modest Narwhal_1005 : you never know. could go down 80% or up 3x. dca wins
10baggerbamm : while every other sector is hitting New Year highs and multi-year highs the chip stocks are way down from their July highs as you can see here.
im_believer OP 10baggerbamm : sounds like a buy to me
im_believer OP modest Narwhal_1005 : For a 3x leveraged etf like this, I don't think DCA is recommended. At least it won't be recommended by me. It's a speculative bet after all.
10baggerbamm im_believer OP : it's a matter of the amount of time you can hold it and the amount of pain you're willing to take. early last week we had a shift in a few of these bobbleheads on TV that said that they were selling some of the software stocks at rallied significantly and they were going to go back in and buy the chip basket not the leveraged but the Sox index because as a group they've sold off significantly and they have not participated in the rallies. and this week so far I've heard a few more people coming back to the table saying I'm buying chip stocks right now. so at this point it's still a contrarian investment because the masses are chasing small caps financial stocks.
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10baggerbamm im_believer OP : pt 2
at least the chip stocks as a group are attracting contrarians right now and maybe at some point we begin to get some momentum back into the stocks and I think and you can go back and see that if we get a Santa Claus rally between now and Christmas I think we can see about a $34 or so price tag on this leveraged ETF.
if you look at the primary companies that make up this etfly nvidia's in it AMD is in it Taiwan semiconductor , micron. go down the list micron had a blowout quarter they raised guidance for next year they raised margin expectations for next year Taiwan semi did the same they had a blowout quarter the reason why TSM been hit is obviously what Will trump do with potential limitation of sales to China of chips number one number two will China invade Taiwan that's why Taiwan semi has been hit so bad. there's nothing to do with their sales because their sales are through the roof and if you listen to the CEO his comments he said they're beyond my wildest dreams. so it's not a fundamental problem with these companies. maybe different divisions within some like AMD that have issues like they're gaming business isn't growing that great their PC business isn't that great but come next year when you have the refresh cycle for laptops where AI is embedded in then that segment will begin to grow.
so again it's a matter of you need to get the rotation back into the stocks and right now all the news is building up and it's good news at some point in time this dam will break and everybody's going to come back in and Chase these stocks.
im_believer OP 10baggerbamm : Wow you typed so much. Holding a 3x leveraged etf like this sounds a bit unwise to me in the long term, so I won't do it, unless I am trapped lol, which is totally possible because I think that most of the chip companies are overvalued right now.
On the other hand, TSM and AMD will continue to grow, regardless of the worries that people have. That's why I also bought some shares of TSM.
10baggerbamm im_believer OP : what is DCA stand for?
im_believer OP 10baggerbamm : Dollar Cost Averaging. A strategy to regularly invest in a particular asset.
10baggerbamm im_believer OP : so let me answer it this way I've held some leverage ETFs for over a year I'm not just holding in perpetuity but I sell calls against the positions I sell puts to accumulate more rather than just set a limit order hoping it falls so I'll sell the put I'll collect the premium. the number one thing that I hear people talk about is oh there's decay leverage ETFs are meant to be day traded and I will tell you what the exception of one leveraged ETF which is the natural gas ETF and there's a guy that's on this forum that I would yield to because he plays that natural gas sector and it is way outside of my comfort zone.
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