To The Moon

Hi Aussie,

I would like to share with you the most popular US stocks and ETFs among Australian users on Tiger Trade. Have you traded any of these stocks before?

Last year was a brutal one for investors. $S&P 500(.SPX)$ lost more than 19.48% in 2022, and $NASDAQ(.IXIC)$ even dropped 33%. Despite the volatility in the market, many investors use inverse exchange-traded funds to hedge their bets and generate excess returns. Let's see what happens.

As you can see from the chart, leveraged ETFs are the most popular choices for our Australian friends. Let's start with SQQQ and TQQQ, the leveraged ETFs that track the NASDAQ index.

$Nasdaq100 Bear 3X ETF(SQQQ)$ & $Nasdaq100 Bull 3X ETF(TQQQ)$

SQQQ provides (-3x) inverse exposure to a modified market-cap-weighted index of 100 of the largest non-financial firms listed on the NASDAQ. TQQQ provides 3x leveraged exposure to a modified market-cap-weighted index tracking 100 of the largest non-financial firms listed on NASDAQ.

The SQQQ and TQQQ ETFs are both leveraged ETFs issued by ProShares that track the NASDAQ 100 Index. There are seven ETFs that track the NASDAQ 100 Index. QQQ is the largest long NASDAQ 100 ETF in terms of AUM and the most actively traded, while SQQQ and TQQQ are the most leveraged.

SQQQ is 3x short of the Nasdaq 100 and TQQQ is 3x long of the Nasdaq 100. Leveraged ETFs like these are designed primarily for short-term trading and should not be held for long periods of time. In 2022, the Nasdaq 100 is down 33% and the 3x leveraged ETFs SQQQ and ETF are up and down well below 99%. The main reason for this difference is the depletion caused by leverage.

US stocks are under pressure in 2022 as the Federal Reserve raises interest rates. Dragged down by technology stocks, Nasdaq dropped 33%. Volatile markets offer more trading opportunities to short-term traders who enjoy high exposure, and highly leveraged index ETFs are an excellent choice for them. If you intend to hold the ETF for a long period of time, it is prudent to choose a lower leverage ETF.

$Tesla Motors(TSLA)$

As Tesla entered 2022, its performance continued to improve, with record deliveries due to the high demand for the Model 3 and operating margins exceeding 19%. As a result of the pandemic's impact on raw materials and supply chains, Tesla deliveries declined.

In the secondary market, Tesla has been overvalued. As US stocks have declined overall this year, Tesla's share price has fallen as well. Meanwhile, Musk reduced his stake in Tesla in 2022 in order to raise funds for the acquisition of Twitter. Tesla's stock price fell by almost 65% in 2022.

$Semiconductor Bull 3X Shares(SOXL)$ & $Semiconductors Bear 3X Shares(SOXS)$

The SOXL and SOXS leveraged ETFs are both issued by Direxion, and track the ICE Semiconductor Index. Among its holdings are the likes of Broadcom Limited, Texas Instruments, Nvidia, Qualcomm, Advanced Micro Devices, and others.

SOXL provides 3x daily exposure to a modified market-cap-weighted index of 30 US-listed semiconductor companies. SOXS provides daily 3x leveraged inverse exposure to a modified market-cap-weighted index of 30 US-listed semiconductor companies.

The semiconductor industry has shown a continuous downward trend in the past year as a result of the Fed's interest rate hike and the downward trend of the semiconductor industry cycle.

$Apple(AAPL)$

Besides Tesla, Australian users are most concerned about Apple, the only US company with a market capitalization above $2 trillion. Apple released new products in 2022, including the MacBook, iPhone 14 series, iWatch and AirPods series, offering the market an increasingly wide selection, but its sales were not strong.

The strong dollar brought headwinds to Apple in 4Q earnings, with revenue and profit below market expectations. Apple's stock fell nearly 26% in 2022.

$NIO Inc.(NIO)$

In addition to Tesla, NIO is also attracting the attention of Australian investors. Due to the pandemic's impact on raw materials and supply chains, NIO deliveries were also impacted in 2022. According to the company's news, NIO delivered 122,000 units in the past year, up 34% year-over-year, but still below the previous guidance of 150-200,000 units.

In response to Tesla Motors' price cut, new energy car manufacturers NIO and XPeng have started a price war, which reduced their margins. It is important to pay attention not only to NIO's delivery volume, but also to its profitability.

$GoPro(GPRO)$

GoPro, Inc. is an American technology company. It manufactures action cameras and develops its own mobile apps and video-editing software. GoPro also has its own app and software for processing and sharing videos. GoPro's share price declined sharply in 2022 as the Federal Reserve raised interest rates.

$S&P Biotech Bear 3X Shares(LABD)$ & $S&P Biotech Bull 3X Shares(LABU)$

LABD and LABU are leveraged ETFs issued by Direxion Corporation that track the S&P Biotechnology Select Industry Index. Among its holdings are the likes of Madrigal Pharmaceuticals, Arrowhead, Akero Therapeutics, Altimmune, Horizon Therapeutics, etc.

A stock's price tends to reflect market expectations and to take precedence over an industry's recovery. In 2022, the vaccine market environment will change significantly, with covid vaccine demand expected to fall sharply compared to 2021 and global vaccination growth expected to slow. After pandemic dividend fades, the valuation for biotech companies may face a reversion risk due to the decline in demand for vaccines .

💡Share Your Insights

Please leave a message in the comments section of this post.

• Have you traded any of these stocks before? If so, did you make any profits or losses?
• In regards to these stocks, which ones are you bullish or bearish on, and why?

🎁Prizes

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⏰Activity Duration

10 February 2023-17 February 2023 $Tiger Brokers(TIGR)$