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The Artificial Intelligence revolution is here and chips are at the core of it fueling the advancements in every industry. Humanity is on the way to total automation, technological singularity, and a post-scarcity economy. The demand for chips will grow exponentially continuing the explosive grows.
This ETF is very volatile and tradable., but buying and holding it for the long term perhaps works better, especially when your portfolio grows to millions and you will face issues such as liquidity and taxes. Buying and holding would give you probably about 100% of annual returns or even more: remember this is 3x leveraged security. Advantages of this ETF:
1. It is the best balance of aggressive-diversified security. The holdings include cream of the crop tech stocks such as Nvidia, AMD, Intel, Texas Semi, Qualcomm, Micron. The set of stocks is automatically re-balanced if a certain company gets weaker overtime, so for the long term investment, the investment is pretty safe.
2. You will not get a margin call on this ETF, so you do not have to sell it at loss. So called "decay" or "volatility drag" is a myth: https://blogs.cfainstitute.org/investor/2015/03/23/the-myth-of-volatility-drag-part-1/
3. You do not pay margin interest on this, yet you get 1.5 times more leverage versus regular margin.
The above is QUARTERLY chart: each bar is one quarter: I love this simple visualization of time/price.
Yearly High-Low analysis. This ETF is up 232% in 2019.
Jun 4: Bought @113 - Jul 15: Sold @166
Sep 4: Bought @157 - Nov 4: Sold @221.
Nov 14: Bought @224, Dec 11; Bought @228 - Dec 12: Sold @247.
Dec 16: Bought small position of SOXS @22 (short inverse ETF) while SOXL was $264.
Jan 7: Sold @284 due to the Daily stop chart 08 and added to SOXS position @20.
Jan 24: sold today at market open @329. It looks like an exhaustion gap.
Apr 7: SOXL 30% up yesterday: good chance to double this quarter.
Dec 1. This is ridiculous. We are up 63% in November alone! See chart 03.
Dec 31. Ending quarter at 83% and year 69% up! Happy New Year!
Apr 2. Note the 1:15 stock split, otherwise it would be around $700
Apr 8. It appears this ETF averages 100-150% a year if you buy and hold.
May 20. Do not ever sell this ETF at loss. It always comes back and goes higher.
Jun 12. Things look good. I believe we will see $60 this year
Jul 26. FNGU is another interesting 3x-leveraged security. It is ETN (not ETF). In the last 3 years it outperformed SOXL: https://stockcharts.com/freecharts/perf.php?SOXL,TQQQ,FNGU
Jul 30. See charts 5 and 13: we breaking trough the flag pattern. Signals for Monthly, Weekly, Daily charts all are BUY. We going to see new highs of $50-60 this year. Do not sell. Hold it at least into 1st quarter of 2022.
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