Major indexes in the stock market have been upended by tariff news as of late. Tech has been taking the brunt of the blow as the Nasdaq-100 has been sliding since mid-February. Despite this, there are still profitable opportunities to set up trades when the sell-offs decelerate.
“Investors today are coming to the scary realization this economic Armageddon Trump tariff policy is really going to be implemented this week and it makes the tech investing landscape the most difficult I have seen in 25 years covering tech stock on The Street,” noted Wedbush analyst Dan Ives in The Street.
“Here is the fundamental problem…investors and companies know pure math and [reality. … This] tariff policy will set the US tech sector back a decade in our views if it stays,” he added.
If the downtrend persists, traders can use the Direxion Daily Technology Bear 3X ETF (TECS ). When prices recover, the Direxion Daily Technology Bull 3X ETF (TECL ) is an ideal play. Both funds expose traders to 300% of the daily performance of the Technology Select Sector Index. That allows for flexibility if the industry heads up (TECL) or down (TECS).
Where Are the Opportunities?
There are still opportunities to be had for investors looking to buy into names while prices draw down. Themes like cybersecurity, cloud computing, and artificial intelligence (AI) should still exhibit long-term growth. That’s due to the world becomes increasingly more reliant on technology.
“Cybersecurity names such as Palo Alto, Zscaler, Crowdstrike, Checkpoint, CyberArk will be defensive names where investors could rotate from semis to software to hunker down during this Category 5 storm and likely outperform other subsets of tech,” Ives added.
Crowdstrike is one of the names found in the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL ), which capitalizes off cloud-computing growth. As mentioned, AI growth will likely continue. Exposure to it is available via the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT ).
Apple and Nvidia may continue prospering amid the growth of cloud computing and AI. That opens up trades in two single-stock ETFs: the Direxion Daily NVDA Bull 1.5X Shares (NVDU ) and the Direxion Daily AAPL Bull 1.5X (AAPU ), which add an additional 50% exposure to both these names.
“Apple and Nvidia remain two core tech names to own and despite this massive near-term uncertainty, it does not change their installed base, technology leadership, and long-term growth opportunities especially with Nvidia leading the AI industry,” the note reads.
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