Tech Sector Chaos Puts Spotlight On Direxion's 3X-Leveraged SOXL And SOXS Funds
Portfolio Pulse from Joshenomoto@benzinga.com
ASML's accidental early release of its Q3 earnings report negatively impacted the tech sector, causing a 1% drop in the Nasdaq index. The report revealed a downward revision in ASML's 2025 net sales guidance, leading to bearish sentiment in the options market. This situation has brought attention to Direxion's leveraged ETFs, SOXL and SOXS, which are designed for short-term trading in the semiconductor sector.

October 16, 2024 | 12:02 pm
News sentiment analysis
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NEGATIVE IMPACT
ASML's accidental early release of its Q3 earnings report led to a downward revision in its 2025 net sales guidance, causing bearish sentiment in the options market.
ASML's early earnings release revealed a lower sales guidance for 2025, leading to bearish sentiment in the options market. This is likely to negatively impact ASML's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
SOXL, a 3X-leveraged ETF, is negatively impacted by ASML's disclosure, as it fell below its 50-day moving average.
SOXL is a bullish leveraged ETF that is negatively impacted by the tech sector's downturn following ASML's disclosure, causing it to fall below its 50-day moving average.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SOXS, a 3X-leveraged bear ETF, saw an 18% lift following ASML's disclosure, providing optimism despite its overall negative trend.
SOXS is a bearish leveraged ETF that benefited from the tech sector's downturn following ASML's disclosure, resulting in an 18% gain.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80