Taiwan Working With U.S. on Semi Industry Impact
The semi industry is caught in the midst of the trade war, putting companies like Taiwan Semiconductor on notice. Initial news, however, is positive, with Taiwan looking to work with the U.S. on tariff negotiations.
Embracing Market Volatility With Leveraged ETFs
Since Liberation Day, the market has made many moves in both directions. While many investors have focused on hedging volatility, a handful of investors have used this is as opportunity to take advantage of any directional movement — whether up or down — by using leveraged ETFs.
SOXL ETF analysis: here's why this semiconductor fund may crash
The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) has suffered a big reversal in the past few months as signs emerged that the artificial intelligence (AI) bubble was starting to fade. The SOXL ETF, which provides a leveraged exposure to the biggest semiconductor companies, retreated to $26.30, down by 62% from its 2024 high.
SOXL: Custom GPUs Are A Risk
I believe Direxion Daily Semiconductor Bull 3X is a strong sell due to increasing competition and margin compression in the AI GPU market. Custom GPUs from companies like Google and Amazon are reducing demand for Nvidia GPUs, further compressing margins and impacting SOXL negatively. SOXL's poor tracking of the benchmark index and significant tracking errors over 1, 3, and 5-year periods highlight its inefficiency.
SOXL: A Buying Opportunity Emerges Amid DeepSeek Panic
SOXL is a highly volatile leveraged ETF, suitable for short-term trading or aggressive investors with a longer time horizon. The recent market panic over DeepSeek's AI LLM has caused a significant drop in semiconductor stocks, presenting a buying opportunity. Despite the current downturn, semiconductors remain essential for economic growth, and the sector is likely to recover quickly.
SOXL Is Down -55% Since I Suggested Alternatives; My Recommendation Doesn't Change
Leveraged ETFs are risky and unpredictable, and daily trading internals over the past 6 months have caused SOXL to return worse than it's target 3x factor to the underlying. Despite SOXL's impressive past gains, its recent 60% drop indicates impaired value that isn't likely to be recovered even if semiconductor stocks rebound. Alternatives to SOXL that I presented in mid-June have outperformed this leveraged ETF.
SOXL: How I Generate Good Income From Triple Leveraged ETF
Leveraged ETFs like SOXL offer high volatility, making them suitable for DIY option monetization to generate income and capitalize on AI trends. SOXL's 30-Day IV of 70-80 and active options market provide opportunities for significant weekly and monthly yields through strategic call selling. DIY option income strategies, including selling PUTs and using protective PUTs, can enhance safety and establish capital buffers.
SOXL: Playing With Fire
The Direxion Daily Semiconductor Bull 3X Shares ETF is a 3x leveraged ETF that produced nearly a 400% return from late October 2023 through July 2024. SOXL shares are highly volatile, with shareholder value getting cut roughly in half since the July top. The semiconductors currently have a rough technical setup, high valuations, and insiders have been selling.
SOXL ETF stock forecast ahead of Intel, AMD earnings
The Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL) has been one of the best-performing funds in the past decade as demand for chips soared. The fund has jumped by more than 2,085% in the last decade and by 186% in the past five years.
SOXL: Another Epic Year-End Rally May Be Incoming
Semiconductor stocks are volatile but appear poised for a year-end rally; patience should be rewarded with lower prices before the upswing. I prefer the Direxion Daily Semiconductor Bull 3X Shares ETF, or SOXL, for leveraged exposure, though it carries significant risks and requires prudent position sizing. Technical analysis of the underlying iShares Semiconductor ETF, or SOXX, shows a downtrend, but bullish indicators suggest a bottom is near, setting up for a rally.
SOXL Remains A High-Risk Gamble, With Losses Mounting (Technical Analysis)
I have warned readers since April about the risks of owning Direxion Daily Semiconductor Bull 3x Shares ETF, a highly leveraged Big Tech play. SOXL has dropped -25% since my original article, and the technical chart suggests a repeat of the 2022 bust. The daily rebalancing feature and high holding costs make long-term gains unlikely, with the strong potential for another -50% to -80% loss.
SOXL: Updating My Mid-June Recommendation To Abandon Leveraged ETF
SOXL shares doubled in value from mid-April to mid-June, prompting my cautionary article on the ETF. My timing was fortuitous, as SOXL are down ~52% since then. However, my leveraged alternatives have performed worse, leaving SOXL investors something to be grateful for. If semiconductor stocks continue to trend in one direction for several weeks at a time, SOXL could potentially outperform its target 3x factor.
