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.
SOXL: Yen Carry Trade Is Kryptonite
SOXL is a leveraged ETF offering high-risk, high-reward exposure to the semiconductor market, magnifying short-term trends and volatility. Recent events surrounding the Yen carry trade have led to massive unwinding, causing losses for investors and spiking market volatility. SOXL remains a strong sell due to the risks associated with the Yen carry trade unwinding and the potential for accelerated decay in volatile markets.
Semiconductors: Riding the AI Wave or Ready to Wipe Out?
Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods.
Direxion Rolls Out Leveraged Nuclear Energy ETF
Direxion today launched an ETF that offers leveraged exposure to companies operating in the nuclear energy industry. The Direxion Daily Uranium Industry Bull 2X Shares (NYSE Arca: URAA) aims to provide twice the daily performance of the Solactive United States Uranium and Nuclear Energy ETF Select Index.
SOXL ETF is overvalued but technicals point to a 25% upside
The Direxion Daily Semiconductor Bull ETF (SOXL) has done well in the past decade as it outperformed most popular funds like those tracking the Nasdaq 100 and S&P 500 indices. It has soared by over 564% in the past five years while the Invesco QQQ (QQQ) and the SPDR S&P 500 (SPY) ETFs.
SOXL: Mixed Risks Ahead Of Nvidia's Shareholder Event (Rating Upgrade)
I see mixed risks in the chip industry heading into the second half. Bullish news hit the tape on Tuesday as Bank of America added Micron to their US 1 list, boosting semiconductor stocks like NVIDIA. Semiconductor ETFs have reasonable valuations with strong EPS growth, but caution is advised due to momentum and technicals.
SOXL: After Doubling, Semi Bulls Should Consider Adjusting Their Leverage
Leveraged semiconductor ETF SOXL has seen significant gains due to the AI trend. Leveraged ETFs like SOXL can erode in value over time due to beta slippage, as warned by the SEC. Investors bullish on AI/semiconductors have alternatives to maintain exposure while avoiding the risks of leveraged ETFs.
Love Nvidia stock: Buy the Semiconductor Bull (SOXL) ETF too
Semiconductor companies are doing well this year, helped by the unprecedented demand by artificial intelligence (AI). Nvidia (NASDAQ: NVDA) stock price has soared by over 152% this year, pushing its total market cap of over $3 trillion.
