$XLE $NRGU Nasdaq has been on a rampage these last few days triggered by electric cars, the cloud, electric cars flying in the clouds, virtual worlds, crazy IPO's and everything in between. Meanwhile the reopen trade is struggling with attracting $$ as the woke world suddenly things covid is going to blow up again. The optics from the SPR drama denting crude despite the SPR crude cannot really dent the secular demand/supply dynamic. I however think the fed (read Powell and his conference) pivot from slightly hawkish to slightly dovish after the last fed meeting paused the reopen trade. I doubt anything will change short term as growth will suck up $$ until we hear a more hawkish tone from the fed. If you cannot handle volatility de lever and buy individual stocks that you like and shift to levered instruments when the tide turns. Selling deep out of money puts on GUSH/ERX (no options on NRGU) is what I am looking to do if this weakness continues. Premium on covered calls very pitiful
@rubinchan @Cutch Make sure to look closely at how those levered instruments are structured. If they're based on futures as UVXY is, they'll decay and you'll be underwater on any long time frame. Some I've seen use derivatives (DRIP does and maybe GUSH, not sure about GUSH) which makes me think they may also "leak" share price because of that. I'd just stick with options if it were me on instruments and not mess with these leveraged funds aside from quick trades, unless your account doesn't allow options.
@rubinchan @Cutch I spent the weekend building this watch list in tradingview. It tracks the relative performance of each sector within the S&P. I then have 'sub-watchlists' of each ETF which have the top 10 - 20 holdings. When I see a sector outperforming SPY, or starting to build momentum in that direction, I pull up a watchlist for that specific ETF so I can see which individual stocks' charts look best and start taking a position in those. Semis for instance exploded. I'm up big on MU. Right now $XLK (tech), $XSD (or $SMH - semiconductors) and $XHB (homebuilders) are the only sectors which are out-performing SPY. $XLY is also bullish, but is looking a bit toppy (discretionary). Growth is starting to overtake value again. Surprising given the inflation prints, but it is what it is.