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- Last Update: 3 December 2020, 0:29
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: see the Human Progress chart 05.
This ETF is very volatile and tradable. But buying and holding it for the long term works as well, 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.
Dec 25: Perhaps selling will not start until the 1st quarter of 2020 to avoid 2019 capital gain taxes.
Jan 2: Daily BUY signal. Re-entering SOXS @283 while retaining a small position in SOXS. When you end a year near its high, some momentum will carry over to the next year. At some point in the 1st quarter, we may go down very hard.
Jan 7: Sold @284 due to the Daily stop chart 08 and added to SOXS position @20.
Jan 9: Re-entered SOXL. Daily SAR signal reversed its direction 4 times in 8 days, which is rare. 3 false signals in a row make the 4th one much more probable, just based on odds.
Jan 24: sold today at market open @329. It looks like an exhaustion gap.
Jan 27: today both Daily and Weekly SELL signals triggered by the Parabolic SAR indicator (charts 5 and 8). Perhaps this is correction.
Feb 24: Daily SAR sell signal is triggered today. The weekly signal is also in the SELL mode. Investors use the coronavirus news as an excuse to take huge last year%27s profits.
Feb 28: sold SOXS and bought SOXL @174.
March 24: Daily BUY signal: chart 8. There are two indicators of the cessation of panic and hysteria today: toilet paper is available in the store and the rise of stock market. When else in your lifetime can you make 46% in 2 days?
Apr 7: SOXL 30% up yesterday: good chance to double this quarter.
May 19: Daily Buy Signal (Parabolic SAR) chart 8
June 24: my predicted trading range for the 2nd quarter was absolutely correct.
Oct 27: it appears we are going retest this quarter see chart 01 which is representative of the overall market direction. Also, see charts 15 and 16 for QQQ and SPY.
Dec 1. This is rediculous. We are up 63% in November alone! See chart 03.
November is 63% up! I will be taking money off the table soon as the market should correct.
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