Individual investors may prefer Windows or Mac, but most traders can agree that exposure to both can be beneficial in a short-term trading strategy with assets like the Direxion Daily Technology Bull 3X ETF (TECL).
With big tech companies like Microsoft and Apple releasing earnings, tech traders may be erring on the side of bullishness given their recent results. This is especially the case with TECL, given that the leveraged fund has 30% of its holdings in both stocks.
Microsoft reported its earnings earlier this week, ousting Wall Street expectations in both revenue and earnings per share.
“Microsoft posted the third quarter of its 2021 financial results today, reporting revenue of $41.7 billion and a net income of $15.5 billion,” an article in The Verge reported. “Revenue is up 19 percent, and net income has increased by 44 percent. Once again, Microsoft has seen strong growth for Xbox and cloud-related services.”
“The PC market isn’t slowing down, despite a global chip shortage, and Microsoft is benefiting from this once again,” the article said. “Windows OEM revenue has grown by 10 percent, reflecting the strong consumer PC demand. Windows non-pro OEM revenue also grew 44 percent, and only Windows OEM Pro revenue declined by 2 percent.”
Apple also recently reported its fiscal earnings, mirroring the revenue and earnings per share beat by Microsoft.
“Apple reported double-digit growth in every single one of its product categories, and its most important product line, the iPhone, was up 65.5% from last year,” a CNBC report said. “Its Mac and iPad sales did better, with its computers up 70.1% and iPad sales growing nearly 79% on an annual basis.”
The pandemic has certainly played a part in boosting demand for Apple’s hardware.
“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Apple CEO Tim Cook.
With its triple leverage, TECL is certainly not for the weak of heart. The fund seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Technology Select Sector Index.
The fund, which is up over 240% the past year, invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index includes domestic companies from the technology sector.
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