Big tech appears to be sloughing off its slow start to 2024 and tech dominance could continue if history once again proves to be correct. If that’s the case, bulls can continue riding the tech wave.
When momentum is squarely behind a sector, it can be difficult to stop. When you pair that with history, tech is poised to have a another strong year.
“In the stock market, certain patterns tend to repeat over the long term,” a Yahoo Finance report noted. “And if you analyze Nasdaq Composite data going back to 1971, the tech-heavy index has risen by 19% every year after a recovery year like the one in 2023. This trend suggests that 2024 could be an ideal year to buy stocks, especially as macroeconomic headwinds like inflation and high interest rates eventually start subsiding.”
If more upside is indeed ahead, traders may want to keep the Direxion Daily Technology Bull 3X ETF (TECL) in their toolbox, especially if they want to maximize their profit potential. Per its fund description, TECL seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index.
Artificial intelligence (AI) was a featured theme during the 2023 market rally and it could have another big year. And that should benefit the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT). The fund seeks daily investment results that equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index.
Technological innovation will need the help of semiconductors to help power applications like AI. That said, traders can look at the Direxion Daily Semiconductor Bull 3X ETF (SOXL). The fund seeks daily investment results equal to 300% of the daily performance of the PHLX Semiconductor Sector Index.
Single-Stock ETF Options
In addition, traders can use leverage to take advantage of bullishness in individual stock names that play in the big tech arena. Direxion offers traders single-stock ETFs in the following companies:
- Direxion Daily NVDA Bull 1.5X Shares (NVDU)
- Direxion Daily GOOGL Bull 1.5X Shares (GGLL)
- Direxion Daily AAPL Bull 1.5X (AAPU)
- Direxion Daily AMZN Bull 1.5X Shares (AMZU)
- Direxion Daily MSFT Bull 1.5X Shares (MSFU)
These single-stock ETFs give bullish traders the additional 50% leverage to also maximize profit potential on their bullish notions. These funds can be helpful during short-term moves when big corporate announcements or positive earnings reports bump up a stock’s price.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
