Direxion Semicon Bear 3X

$iShares Semiconductor ETF(SOXX.US)

Context:

Semiconductors are recovering well after a drawdown and market volatility. Structural demand across AI infrastructure, data centers, and hardware remain robust.

My trade:

I am continuing to hold onto my long position in SOXX. This holding allows me to have broad diversification and exposure across leading chip manufacturers like Nvidia, Broadcom, AMD, and Intel. This allows me to capture AI demand growth and minimizing single stock concentration risk at the same time.

Takeaway:

Sometimes holding through price fluctuations and volatility allows the stock or ETF to recover over time and continue to compound. I am believing that this is a structural sector run, so I will continue to hold and buy at lower prices if an opportunity arises.

bond yield up, should I switch from the stock market to the bond market ?

Bond's yield up, meaning bond's trade price drop. correct me if I am wrong

The ultimate driver of long-term US Treasury yields is the US fiscal deficit. The so-called widening risk spreads and high corporate debt levels are all built on this fertile ground of US deficits.

Is there a solution?

This comes down to whether we face a soft or hard landing.

If it's a soft landing, the USD needs to depreciate and rates must come down. Right now, it's like having cancer but also suffering from food poisoning—let's handle the emergency first and deal with the chemotherapy later.

which sticks will benefit?

Not many actions in the short term as macro it is not good and micro can be manipulated with posts from news or lawsuits that might come from software or semiconductor sectors in relation to AI. So DCA slowly into both IGV Mags if you believe software stocks will win and betting on soxx for the semiconductor sector with AI factors aiding growth to the companies.

10 year treasury yield has risen but US economy is on growth phase esp extraordinary demand from AI related. Hence, how high can the US stock market continue to rally will depends on each quarter earnings report and of course the economic data. Volatility is to be expected as always.

Yields climbing above 5% and substantial issuance are expanding credit spreads, redirecting capital from long-duration AI hardware toward cash-generative software as profit pools move downstream to applications.

Surging 10-year yields and widening credit spreads create dual pressure across markets, but the impact is far from uniform. High discount rates naturally compress high-multiple semiconductor valuations after an extended run. Meanwhile, capital rotation into mission-critical software highlights a crucial evolution: investors are becoming far more selective, prioritizing resilient cash flows over capex-heavy AI hardware infrastructure.