Santa Claus rally incoming for NASDAQ stocks: TQQQ day

Today I bought TQQQ (NASDAQ:TQQQ) in anticipation of the wildly bullish sentiment that is infusing markets today with my favourite kind of fundamental catalyst: irrational exuberance.

TQQQ is the triple bull ETF from ProShares that is described as providing “3x leveraged exposure to a modified market-cap-weighted index tracking 100 of the largest non-financial firms listed on NASDAQ”.

The trick with TQQQ is to buy it in the premarket and sell it after it moves, since the formula that governs it is 3 x the intraday NASDAQ move i.e if NASDAQ climbs 3% in the regular session, the ETF should do 9%, though of course there are no guarantees.

CPI coming in at 0.1 percent is sure to ignite mardi gras mentality as the bulls interpret that as an end to everything negative from inflation to the bear market in the stock market and real estate. The Fed is widely expected to limit a rate hike tomorrow to 50 basis basis points, which, ahead of market open, is having the usual impact and pre-market rallies in NASDAQ, S&P 500, and DJI futures indicate a powerful rally in store for the day.

Just for laughs, I asked ChatGPT to describe a winning scenario for investing in NASDAQ:TQQQ and here is the laughably simplistic answer for your amusement:

    A typical winning trade with the NASDAQ:TQQQ triple bull ETF would involve buying shares of the ETF at a low price and selling them at a higher price. This can be done by monitoring market trends and news related to the ETF and making a decision to buy or sell based on that information. If the price of the ETF increases after the shares are purchased, the trade would be considered a “winning” trade. For example, if an investor bought shares of the NASDAQ:TQQQ ETF for $100 each and sold them for $120 each, they would have made a profit of $20 per share, or 20% on their investment.

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
More Info...

[email protected]

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.