TQQQ Stock Recent News

Last August, TQQQ was recommended for a short-term trade based on bearish sentiment, but investors should now take a profit on half of their position. The equity "puts to calls" ratio is higher now than a month ago and at the level that occurred at the COVID bear market low. This is very bullish. The Hulbert Survey of NASDAQ Newsletter Writers shows a shift back toward bullish sentiment but not yet at a level to reverse the previous buy signal.

The ProShares UltraPro QQQ ETF is a leveraged fund that aims to provide three times the daily performance of the Nasdaq-100 Index. TQQQ should be approached cautiously due to its strategy, relatively high expense ratio for an ETF, and potential for large swings. Headwinds include recent CPI figures, lofty valuations, and a US consumer under pressure from higher borrowing costs.

September is historically volatile for stocks, but October-December are more favorable for risk-taking. Currently, mega-cap tech stocks are outperforming smaller-cap stocks, while defensive sectors and credit spreads are not showing signs of stress. Consider investing in mega-cap, liquid technology stocks, such as the TQQQ ETF, which is holding up well in the volatile environment.

This article is looking at the possibility of coupling together short positions in both TQQQ and SQQQ in a pairs trade. Leveraged ETFs experience NAV erosion and are not advisable as long-term investments. This TQQQ SQQQ pairs trade has a recent annual decay rate of 21.175% and expected returns of around 18%.

The CBOE "puts to calls" ratio and the Hulbert survey of NASDAQ newsletter writers point to the end of the correction and at least a four-week rally. The market index to use will be the QQQ, or better, a leveraged variant of it such as the Proshares 3x QQQ symbol - TQQQ. TQQQ was designed specifically for short-term rallies of a few days to a few weeks, which is what we believe the indicators point to.

American technology stocks have done well this year as the artificial intelligence (AI) craze gained steam. As a result, the tech-heavy Nasdaq 100 index has surged by more than 40% while the ProShares UltraPro QQQ (TQQQ) ETF rose by over 50%.

TQQQ is a 3x levered fund that seeks to magnify the daily movement of QQQ. Understanding the leverage the fund uses is a must for investors. Investors must also be aware of the volatility of the overall market when assessing TQQQ.

The ProShares UltraPro QQQ ETF is a leveraged fund that aims to achieve three times the daily performance of the Nasdaq-100 Index, making it highly susceptible to big swings. TQQQ has seen significant gains over the past year, mainly from January, attracting the attention of swing traders. However, investors should approach this fund cautiously due to macro-headwinds that could limit further gains and make TQQQ a risky investment option.

TQQQ is up 118% this year. While we're overbought, I think it's going higher still in 2023. Maintaining my strong buy recommendation with the caveat we are likely to see some consolidation short-term.

The tech-heavy Nasdaq Composite Index outperformed, gaining 5.8%, while the S&P 500 added just 0.3%. The Dow Jones Industrial Average Index dropped 3.5% for the month.