Apple (AAPL), Microsoft (MSFT) – Seductive Technology ETF has a lot of tailwind by 2021

Apple (AAPL), Microsoft (MSFT) - Seductive Technology ETF has a lot of tailwind by 2021

News Highlights: Apple (AAPL), Microsoft (MSFT) – Seductive Technology ETF has a lot of tailwind by 2021

It’s the largest sector in the S&P 500 and arguably the most loved, so it’s no surprise that technology is drawing a crow.

What happened

Unsurprisingly, some traders love to leverage technology exchange-traded funds and in a growing universe of such tactical instruments, an old friend should be on traders’ radar screens this year: The Direxion Daily Technology Bull 3X Shares (NYSE: TECL).

Up almost 16% in the past week, TECL tries deliver three times the daily return of the S&P 500 Technology Table of contents. That makes TECL a leveraged proxy on Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), as these two tech titans together account for more than 43% of that index.

Why it matters

As a triple-leveraged play on a sector that is not exactly compliant, TECL should not be held for more than a few days in a row. However, the environment is good for merchants to move in and out of TECL in the course of 2021.

“If part of the contention for further equity gains is tremendous central bank liquidity, technology should capitalize on this trend, especially if volatility continues to decline. Since 2008, technology generally performs better when financial conditions improve. Average outperformance is approximately 30-35 basis points (bps) per month, ” according to BlackRock.

Another reason traders may want to embrace TECL this year is that due to its obvious negative consequences, the coronavirus pandemic has some positive effects on technology.

“A good example of this is online shopping. When we look at domestic credit card information, we see an interesting pattern. As you might expect, the share of spending going to online retailers has skyrocketed at the start of the pandemic, BlackRock notes. “Less obvious was the lasting strength of this trend. Even as lockdowns eased, the online retailer’s portfolio share remained high compared to the pre-pandemic norm. In other words, even as consumer mobility returned, many households began to appreciate the convenience of services such as online grocery delivery. “

What’s next

Another catalyst for TECL is the robust consumer side of the tech story – one that’s a potential spark for many of the stocks in the TECL index, such as Apple.

“Household technology spending increased by more than $ 100 billion or 25% in the six months between May and November. While part of the year-end boom was due to early holiday spending, the trend is clear and has been around for a while, ”BlackRock notes. “For investors, all of this suggests turning within technology rather than leaving the industry.”

Via: www.benzinga.com

Read more: Check the latest technology news updates and information. Share this news with your friends and family to support us.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Anatha Announces Her Accessible and Equitable Public Token

Anatha Announces Her Accessible and Equitable Public Token

The Anatha public token sale is different from others in many ways. There is no limited window for crypto “insiders.” Instead, the the sale is ongoing, ...
Coinme, a Seattle startup that is ‘encrypting’ for legacy financial services, raises $10 million

Coinme, a Seattle startup that is ‘encrypting’ for legacy financial services, raises $10 million

Investors have been pouring cash into crypto and blockchain startups lately, including large rounds for companies such as BlockFi, Dapper Labs, and ...
Fed keeps rates close to zero, projects two possible rate hikes by end of 2023

Fed keeps rates close to zero, projects two possible rate hikes by end of 2023

The upward revision suggests that the Fed sees a faster-than-expected recovery. The economic projections raised expectations for real GDP growth in 2021 to ...
Futu trading platform restricts cryptographic futures price information in mainland China

Futu trading platform restricts cryptographic futures price information in mainland China

Source www.reuters.com Our Standards: The Thomson Reuters Trust Principles. In the past month, Chinese authorities have announced the arrest of over 1,100 ...
Best cheap wireless earbuds in 2021

Best cheap wireless earbuds in 2021

You can find an endless list of true wireless earbuds under $100 on Amazon from random brands you’ve probably never heard of. But I’m sticking with some ...
Inflation wants to eat your money, but you can beat it with gold

Inflation wants to eat your money, but you can beat it with gold

has done a phenomenal job of keeping ahead of the pace of inflation and has stood the test of time. While the Federal Reserve can print money, they can’t ...
Frontline healthcare professionals deserve ‘premium pay’

Frontline healthcare professionals deserve ‘premium pay’

Tim Foley is executive vice President of SEIU 1199. Kiame Mahaniah is CEO of the Lynn Community Health Center. Over the next few months, the Legislature will ...
Pardee UNC Health Care Names Team Members of the Year for 2019 and 2020 Pardee Hospital I Hendersonville, NC

Pardee UNC Health Care Names Team Members of the Year for 2019 and 2020 Pardee Hospital I Hendersonville, NC

Source Pardee UNC Health Care is a not-for-profit community hospital founded in 1953 and is managed by UNC Health Care. The hospital is licensed for 222 acute ...
Why is CX-5 still the Mazda’s most sensible SUV choice

Why is CX-5 still the Mazda’s most sensible SUV choice

In terms of size it slots between the brand’s smaller CX-3 and the larger CX-5, but it’s priced almost on par with the latter vehicle. It is smaller but ...
Novus Health Clinicians Convicted of Fraud in a $40 Million Scam

Novus Health Clinicians Convicted of Fraud in a $40 Million Scam

At his own trial, Harris testified that he and Little, rather than physicians, decided which patients would be admitted to or discharged from the Novus hospice ...
Show next
Compsmag - Latest News from tech, business and health
Logo