Direxion Semicon Bull 3X

$iShares Semiconductor ETF(SOXX.US)

Context: Semiconductor stocks and ETFs have experienced a valuation pullback during the recent market correction. This was driven by macroeconomic concerns over rising borrowing costs and projected interest rate hikes this year and next year. However, recent earnings still show demand for AI, data center hardwares, and semiconductor manufacturing equipments. The most recent ETF inflows on 16 Oct for SOXL shows $1.3 Billions net inflows representing 6.5% increase in AUM.

My trade: I am holding onto my core position in SOXX through this current correction. Maintaining my holding gives me diversified exposure across top tier semiconductor leaders. I am willing to ride out this macro driven volatility and stay invested.

Takeaway: The market recovered 2 days ago and was followed by a sell down yesterday. It was volatile and the corrections can trigger emotional panic selling. It may not be easy to hold through the corrections. In view of this, it is better to follow own plan and be clear minded when investing in volatile times.

$iShares Semiconductor ETF(SOXX.US)

Context

The iShares Semiconductor ETF holds a basket of US listed chip companies, including designers and equipment makers, so it gives broad exposure to the semiconductor cycle. The price has swung a lot in recent months, which suits short term trading.

My trade

I bought a small amount, quickly sold it for a gain a couple of days later, and bought again after the price pulled back. This is more of a trade than a long term holding, since many of the companies in the ETF look overvalued to me.

Takeaway

Keeping the size small and taking profits on the swings makes more sense here than holding for the long run, given how stretched valuations look.

Traders are buying the chip selloff with leverage at a record pace

Source: StockMarket.News

Fed CPI. US stocks opened red and stayed red until the close, with only one green apple left 😇😓😓

1B 2B 3B — Inflation should stay close to forecasts. Core prices remain sticky, but there’s little sign of a major upside or downside surprise.

1B 2B 3B

Inflation looks to continue to rise slightly, especially headline inflation which takes into account rising energy and food prices

1B, 2B, 3B

I think headline inflation will be slightly elevated but not too much. Core CPI to also rise by 0.2%

it will be 3-6% not anything more. if it is more 6% will be a bonus and beyond expectation.