To The Moon

• On Tuesday's trading day, $Nasdaq100 Bear 3X ETF(SQQQ)$ rose 3.35%. Its trading volume ranked seventh in the entire US stock market, with a trading volume of $95.65M.

• At the same time, $Nasdaq100 Bull 3X ETF(TQQQ)$ fell 3.35%, ranking 10th in the entire US stock market in trading volume, with a trading volume of $77.76M.

Will you buy $Nasdaq100 Bear 3X ETF(SQQQ)$ or $Nasdaq100 Bull 3X ETF(TQQQ)$ ?

Firstly, I believe that you know the above two triple-leveraged ETFs and $Invesco QQQ Trust-ETF(QQQ)$ (down 1.11%) are tracking the index of $NASDAQ 100(NDX)$ (which down 1.11% on Tuesday).

The comparison return for YTD 2023 for the Index are as follow:

As of 12 Sept.

We can see $NASDAQ 100(NDX)$ +40.76%, $NASDAQ(.IXIC)$ +32.6%, $Nasdaq100 Bull 3X ETF(TQQQ)$ +129.74%, and $Nasdaq100 Bear 3X ETF(SQQQ)$-66.47%.

So, will $NDX Continue to rise or may come a decline for a rest?

$NDX’s rise this year has been mainly driven by the AI and semiconductor industries, especially Magnificent 7 stocks are holding the market.

And the Magnificent 7 technology stocks, except $Amazon.com(AMZN)$ , $Microsoft(MSFT)$ and $Tesla Motors(TSLA)$ all fell in September. Especially that $Apple(AAPL)$ & $NVIDIA Corp(NVDA)$ had fell 6.6% and 9.9% respectively in September as of Sept.12th.

As of 12 Sept.

The main reasons for Apple's recent decline are: Investors are increasingly worried about its sale performance in China, its largest single market.

• on the one hand, there are reports that iPhone mobile phones have been banned on certain occasions in China.

• On the other hand, the iPhone 15 series of mobile phones just released on September 12 are facing fierce competition with the currently hot-selling Huawei mobile phones in China. Even Wallstreet disappointed iPhones’ prices staying relatively the same and the stock price feell.

Consider the reasons for Nvidia's decline: After experiencing record gains, people are worried that $NVIDIA Corp(NVDA)$ 's stock price has peaked.

• One reason goes to the launch of the artificial intelligence technology export ban in the fall of 2022, which caused $NVDA ‘s exports of high-end artificial intelligence chips to China have been restricted.

• The other side, $NVDA has also made large write-downs on inventory,

• And with the stock price falling. Investors are wondering $NVDA is nothing exciting as it struggles with gaps( around $433 area).

Based on the components weight of $NDX, we can see $Apple(AAPL)$ & $NVIDIA Corp(NVDA)$ weight over 15% of $NASDAQ 100(NDX)$. We also see $Microsoft(MSFT)$ , $Amazon.com(AMZN)$ ,$Meta Platforms, Inc.(META)$ , $Alphabet(GOOG)$ , $Tesla Motors(TSLA)$ declined on Tuesday.

If all Magnificent 7 stocks are on the way down, I think its a time to bet fuller rise on $Nasdaq100 Bear 3X ETF(SQQQ)$ .

What’s more, according to public infoformation, the declining stocks number of $NASDAQ(.IXIC)$ keeps outpacing the risers, the AD Line of $NASDAQ 100(NDX)$ may follow up.

See from the below chart, AD line of $NASDAQ(.IXIC)$ moved to South earlier and deeper:

Advance / Decline Line

The Advance/Decline Line (AD Line) is a breadth indicator which is calculated by taking the difference between the number of advancing and declining issues and adding the result to the previous value. The AD Line should confirm an advance or a decline with similar movements.

• It rises when advances exceed declines and falls when declines exceed advances.

• It's important to compare Advance/Decline Line plotted for the index with the performance of the actual index.

So I’m expecting a decline of AD Line of $NASDAQ 100(NDX)$

Same logic analysis would goes to $Semiconductors Bear 3X Shares(SOXS)$ .

As of Sept.12

It has rise since last Wednesday, if all the semiconductor stocks tend to pullback, we can have some position in $Semiconductors Bear 3X Shares(SOXS)$ .

As of Sept.12

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