As seasoned investors already know, the 24-hour news cycle can change markets quickly and swiftly. After weathering the tariff tantrum storm, downtrodden Magnificent Seven stocks are starting to look magnificent again thanks to U.S.-China trade deal news, but caution is always warranted.
It’s the type of volatility that experienced traders can thrive on, allowing them to profit from the heavy market fluctuations. As such, it’s always necessary to have the trading tools to capitalize on an up or downtrend with single-stock ETFs. With that, traders looking into Magnificent Seven plays should consider the following:
- Meta: Direxion Daily META Bull 2X Shares (METU)/Direxion Daily META Bear 1X Shares (METD)
- Tesla: Direxion Daily TSLA Bull 2X Shares (TSLL)/Direxion Daily TSLA Bear 1X Shares (TSLS)
- Apple: Direxion Daily AAPL Bull 2X (AAPU)/Direxion Daily AAPL Bear 1X Shares (AAPD)
- Amazon: Direxion Daily AMZN Bull 2X Shares (AMZU)/Direxion Daily AMZN Bear 1X Shares (AMZD)
- Google: Direxion Daily GOOGL Bull 2X Shares (GGLL)/Direxion Daily GOOGL Bear 1X Shares (GGLS)
- Microsoft: Direxion Daily MSFT Bull 2X Shares (MSFU)/Direxion Daily MSFT Bear 1X Shares (MSFD)
- Nvidia: Direxion Daily NVDA Bull 2X Shares (NVDU)/Direxion Daily NVDA Bear 1X Shares (NVDD)
As reported by CNBC, news of the trade deal catapulted market value by $837.5 million on one trading day. Of course, that can all change as ongoing trade deal negotiations are fluid events, making it imperative for traders to stay flexible. With leveraged/inverse single-stock ETFs from Direxion, this is possible.
“With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months,” said Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday. “This morning is a huge win for the bulls and a best case scenario post this weekend in our view.”
An Alternate Play on China
Positive trade deal news can be a boon for U.S. and China stocks. That said, traders may also want to take a look at the Direxion Daily FTSE China Bull 3X Shares (YINN). It seeks daily investment results equal to 300% of the performance of the FTSE China 50 Index. As mentioned, flexibility is a key, so if a bearish sentiment prevails, traders can opt for the Direxion Daily FTSE China Bear 3X Shares (YANG).
“These developments should reduce the US-China geopolitical risk premium that has been associated with China stocks,” said Nomura Holdings strategists.
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