FNGU: Now Is Not The Time To Chase Big Tech's Epic Rally
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The MicroSectors FANG+ Index 3X Leveraged ETN (FNGU) is currently rated a hold due to recent massive gains. Despite strong momentum, its extreme leverage and tracking error make it risky for long-term holding. The reward/risk ratio is insufficient to justify buying FNGU at its current overbought levels.
December 16, 2024 | 7:45 am
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FNGU, a 3X leveraged ETN on mega-cap tech stocks, is rated a hold due to recent gains. Its extreme leverage and tracking error pose risks for long-term holding, and the current reward/risk ratio is not favorable for buying.
FNGU has seen significant gains driven by stocks like CrowdStrike and Netflix. However, its extreme leverage and tracking error make it risky for long-term holding. The current overbought levels and insufficient reward/risk ratio suggest holding rather than buying.
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IMPORTANCE 80
RELEVANCE 100