Then you are going to need a song/theme. Heed it well. (I'm serious about this. You need a theme to your LIFE!)
Not even a 5% drop and FNGU dropped over $50 a share straight to $500....that was one huge drop of 10% . .could easily dip below 400 if nasdaq starts a minor summer sell-off.
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And this is why 3x etfs get really messy when indexes drop extremely hard, FNGU down over 100 since touching highs just last week ...now to climb back to 550 plus the nasdaq has to jump well beyond its historical highs from last week..
Correct. It gives concentrated leverage but when it is not in favor you get times when it implodes like this. The only question is will it come back or are value stocks in favor now? The future is tech especially semiconductors. As for the megacap tech companies that FNGU represents it will do good for now but I do agree with the government that they should be broken up since they are thinly veiled monopolies (really monopsonies), especially Google & Apple. It's still a surprise to me that the Chinese handset makers don't create their own mobile OS like Nokia had at one time (Simbian) instead of relying on Google's Android OS. Unless things change drastically with Lina Khan or if the Trump admin sues them, the tyranny of the FANG+ stocks & semiconductors will continue to vastly outperform other stocks. When this wave of buy junk small caps ends people will just pile back into the usual suspects.
The problem with these etfs is you capture insane gains on the way up so much you never believe it's going to end. I mean fngu was around 260 in April I believe and then went parabolic to nearly 600 in only weeks. It literally felt like it was never going to end. Now with earnings in favor who knows now which way it will go with volatility now in play ....fngu has been broken but can still get a huge jump up if all the mag 7 perform well into earnings. ...its funny how everyone was buying up the mag 7 just a week ago and today they want absolutely nothing to do with them. I still think you need tech and semi and magnificent 7 to perform well in order to lift markets, without this group it won't go far at all.