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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 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 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.
Apr 7: SOXL 30% up yesterday: good chance to double this quarter.
June 24: my predicted trading range for the 2nd quarter was absolutely correct.
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!
Feb 2. Watching for breaking through $605 to continue uptrend. (4-h chart)
Feb 12. This is ridiculous. I am rich
November is 63% up! I will be taking money off the table soon as the market should correct.
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