- Rank: 40
- Followers: 18
- Votes: 71
- Years Member: 20
- Last Update: 18 May 2022, 21:45
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 growth.
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 over 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, TSC. The set of stocks is automatically re-balanced if a certain company gets weaker over time, 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 the QUARTERLY chart: each bar is one quarter: I love this simple visualization of time/price.
Yearly High-Low analysis. This ETF was up 232% in 2019, and 200% in 2020.
Apr 7: SOXL 30% up yesterday: good chance to double this quarter.
Dec 1. This is ridiculous. We are up 63% in November alone!
Dec 31. Ending quarter at 83% and year 69% up! Happy New Year!
Apr 8. It appears this ETF averages 100-150% a year if you just 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 through 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 the 1st quarter of 2022.
Oct 30. A lot of volatility, but things look good. Weekly Buy signal just triggered (chart 05). I still expect to see IT AT $60 in about 3 months. That%27s a huge 25% increase in price. And I discovered another great 3X-Leveraged ETN FNGU (chart 14). TQQQ is also doing very well.
Nov 6: This thing reaches a 100% increase year to date yesterday and briefly retreats. So it looks like we may see $70 this year or even more. It will on average double your money every year! Everyone needs chips this day. They put them even into toasters.
Nov 16. We are 112% year to date! Today we triggered daily buy signal chart 09 also for S&P chart 15. This may take us to $70-75 in the near term. Santa Clause rally is pretty typical for this season.
Dec 7. Wow. Up 15% in a single day. A new all-time high. Daily Buy signal today on Parabolic SAR.
May 11. Deep-deep discount! Mid-term quality stocks go up and down. Long-term they only go up. Just be patient, it will always come back; being in this kind of correction a few times. Capitulation is coming, buy now, if you have cash. The good news is that we are immune to a margin call.
Annual return averages 100% a year:
This information is presented for education purposes only. StockCharts.com is not responsible for any comments, advice, or annotations presented on this page. Please review our Terms of Service for more details.