My spidey senses are kicking into gear…
Because our old friend leverage is back.
Those of you who have read my writing for the past year know that the memory supercycle thesis has produced massive winners for my readers.
Derek had a 605% gain on Micron…
Aman banked 92% on her EWY LEAPS position in just 2 months…
But there’s a couple of incidents which lead me to believe we might be in for some short term volatility…
I’ve written extensively about the risks of single stock ETFs… and now 2 of the biggest memory players have leveraged ETFs attahced to them.
And in Hong Kong this morning, a 2X leveraged SK Hynix ETF quickly became the largest single stock ETF on the planet…
That’s larger than TSLL… the 2X leveraged Tesla ETF that has been around since 2022.
A 2X leveraged Samsung ETF also entered the top 10 largest single stock products.
So now we’ve got leveraged products on stocks which are already going up 10-12% in a single day.
Meaning you can easily lose 20% of your capital with 1 bad day.
So if you feel like you’ve missed the boat on the memory trade… I’ll tell you right now - chasing returns with leveraged ETFS is the absolute dumbest way to try and make money here…
And you will lose your shirt…
The smart way?
I’ve covering that on today’s pre-Investormania livestream at 11AM ET
You can still grab your virtual ticket which gives you access to the livestream + the event + the recordings from said event
Oliver