Posted by Since it appears that nothing can stop this bull market, I decided to sell half of my position in SQQQ and bought 50 shares of SOXL (Direxion Daily Semiconductor Bull 3X). SOXL tracks the performance of the NYSE Semiconductor Index with leverage to seek a 300% daily return. On 7/11/25 this ETF’s closing price was $27.44 per share. SOXL had a 15 for 1 stock split in 2021. Shares are down 1.37% YTD despite strong results from NVDA and other big semiconductor companies. I took a $440 loss by selling SQQQ earlier that I wanted to. But if things go like they usually do, this was probably the low for SQQQ and the stock market will go on a down trend from here. I’m still holding 50 shares in case it actually does.
If semiconductor companies start to lose favor, there is also a 3X bear ETF (SOXS). They also have single company leveraged bull and bear ETFs. I wouldn’t risk betting on a single company unless I knew the company really well. A leveraged sector ETF seems like it would be less volatile. You still have to make your investment when the market is turning in your favor. Not every semiconductor company has the earnings potential of NVDA, which is why SOXL has not performed as well this year. Government policy changes tend to be a big factor for all companies right now. No one knows what Trump is going to do or say next.
I feel bad for Jerome Powell and the Federal Reserve. Trump is calling him a loser and wants him replaced because he hasn’t lowered interest rates enough. Powell’s term as chairman of the Fed ends in May 2026. By then we should know the full impact of tariffs on the economy. It is very likely that interest rates will be lower by the time Powell steps aside. I think the fear of not having the ability to lower interest rates when the economy really starts to go negative is what is holding the Fed back. With the stock market at record highs and low unemployment, it’s hard to find a good reason to lower rates right now. Someone should remind Trump that he’s the one who nominated Powell for chairman of the Fed back in 2018.