As Big Tech Booms, Play the Strength With ‘TECL’ – ETFdb.com

The whos who of big tech are once again leading a rally in the markets, and traders have an opportunity to play the boom with the Direxion Daily Technology Bull 3X ETF (TECL B+).

Familiar market leaders like Apple, Microsoft, YouTube, and Googles parent company Alphabet are once again helping to lead stocks back into the green following some recent volatility. All four companies celebrated strong earnings reports recently.

Apple, the worlds most valuable public company, said profits nearly doubled last quarter, iPhone sales jumped an impressive 50%, and revenue for every major product line grew at least 12% annually, a Morning Brew article noted. Microsoft had its most profitable quarter ever thanks to greater demand for its cloud-computing services and workplace software. CEO Satya Nadella said the words enterprise metaverse on the earnings call, and not even he knew what it meant.

Alphabet, Googles parent company, said ad revenue increased 69% [redacted joke], the article added. The real highlight was YouTubewith $7 billion in quarterly revenue, its oh so close to eclipsing Netflixs sales numbers ($7.3 billion).

Of particular importance to TECL is the two dueling operating systemsApple and Microsoft. Both stocks comprise over 35% of the funds holdings as of July 28, so the fund goes as they go.

Of importance for traders, in particular, is still the effects of the pandemic and the new Delta variant. Large tech companies like Google and Facebook are addressing the rise in Covid cases, which will be something to watch in big tech.

Alphabet Incs Google and Facebook Inc said on Wednesday all U.S. employees must get vaccinated to step into offices. Google is also planning to expand its vaccination drive to other regions in the coming months, a Reuters article said.

With its triple leverage, TECL is certainly not for the weak of heart. The fund seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Technology Select Sector Index.

The fund, which is up over 50% this year, invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index includes domestic companies from the technology sector.

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As Big Tech Booms, Play the Strength With 'TECL' - ETFdb.com