$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ This sell-off is honestly a bit ridiculous and doesn't make much sense. OpenAI is still a private company, so this news shouldn't really come as a surprise. It feels more like hedge funds are just using the recent run in semis and the move up in yields as an excuse to push them lower. Now there's a clear disconnect, and if yields keep falling, the setup seems ripe for a rebound. Once SOXX gets back to $600, this could rally hard past $200. On top of that, Trump is starting to look desperate with the possibility of losing Texas, so he may be forced into some kind of deal to lift markets and bring down oil and yields before the midterms.
Looks like OpenAI and Anthropic compute revenue in different ways, so comparing the two directly is not really accurate. It would be clearer if both eventually IPO and file standardized reports. OpenAI recently told investors that annualized revenue was approaching $50BN at the end of September. That number is well below the $70BN that multiple media outlets reported late last month based on information given to investors. The gap comes from how OpenAI and Anthropic calculate annualized revenue. Anthropic includes sales through cloud partners like AWS and Google Cloud, while OpenAI does not include that partner revenue in its figures. $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ The 10-year Treasury note auction was viewed as highly successful and "historically strong" by market analysts. Even though it cleared at a high yield of 5.30% - the highest rate for a 10-year auction since November 2000 - robust investor demand outpaced expectations, and the market rallied on that. The 30Y bond auction is up next, and I'm expecting a similar outcome with a market rebound.
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ There could be some selling pressure early on. If that happens, I might add to my current position to improve my average. I'm long regardless of the recent moves. Down 35k, but not really a big deal compared to how much I've made.
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ Not financial advice. My take: the waiting has gone on long enough. This looks like bulls are back in control, and the memory sector has also found its footing. It feels like the setup is there for a move toward 180 or higher. Some are calling it a cup and handle, others a big W formation. Either way, the breakout direction points higher.
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ I'm pretty sure we'll be alright. The underlying companies are beasts. If they fail, the entire market fails. MU (8.55%) and NVDA (6.82%) are expected to generate more earnings growth than the bottom 490 S&P 500 companies combined. The analysis also found that AI infrastructure companies are projected to drive more than half of S&P 500 EPS growth for the third quarter.
$Intel(INTC)$ Too bad INTC took a hit on the rumor, though the news landed on a red market day. Elon Musk moved to shut down speculation about TSMC taking operational control of the Terafab AI chip complex, writing on X that his company will build and run the fab, with zero doubt about that, and limiting Taiwan Semiconductor's potential involvement to a possible sublease of part of the site. Initial investment is $16.8 billion, with total potential spending across all phases reaching up to $119 billion and a planned workforce of at least 3,000. Intel joined as the sole named manufacturing partner in April, with its next-generation 14A process node designated as the facility's only identified technology. For Intel, the resolution matters more
$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ I closed out the first TQQQ RSI buying cycle by selling all my shares at $85.28 on October 6, locking in a +9.95% gain, or +$621. The second cycle starts tomorrow.