Q3 Earnings Should Provide Plenty of Opportunities in Big Tech

Amid high inflation, interest rates, and geopolitical risk swirling the capital markets these days, investors can always turn to big tech for a dose of positivism in the markets.

“With the list of stock-market worries growing seemingly by the day, investors looking to earnings season for a dose of good news are hanging their hopes on a familiar group: Big Tech,” Bloomberg noted.

That strategy is warranted given that the Nasdaq-100 is up almost 40% despite the recent pullback that’s characteristic of an August and September slowdown. Fundamentally, big tech has pushed aside the post-pandemic slump and is reestablishing its market dominance again in 2023.

“After slashing thousands of jobs to cut costs, the biggest US technology and internet companies are pumping out profits similar to those generated two years ago when the pandemic sent sales of digital services and electronic devices soaring,” Bloomberg added. “The expectation now is that they’ll help pick up the slack from industries like energy and health care that are still mired in an earnings slump.”

With trade opportunities abound in big tech, the +Direxion Daily Technology Bull 3X ETF+ (TECL B+) can offer broad-based exposure. With its triple leverage, TECL is certainly not for the weak of heart, given that the fund seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index. On the flip side, there’s also the +Direxion Daily Technology Bear 3X ETF+ (TECS B) for when big tech pulls back.

Additionally, traders can parse the Nasdaq-100 and extract opportunities in single-stock ETFs. These products allow traders to get tactical exposure to stocks by playing the downside as well as getting extra leverage when their notions skew toward the upside.

Bearish traders can look at the heavy hitters in the Nasdaq-100 such as Amazon (AMZN), Google (GOOG), Microsoft (MSFT), and Apple (AAPL). Here are four single-stock ETF options for the bearish side of tech:

1. Direxion Daily AMZN Bear 1X Shares (AMZD )
2. Direxion Daily GOOGL Bear 1X Shares (GGLS )
3. Direxion Daily MSFT Bear 1X Shares (MSFD )
4. Direxion Daily AAPL Bear 1X Shares (AAPD )

Traders who sense that more upside could be ahead for the aforementioned names can get an additional 50% of stock exposure with the following ETFs:

1. Direxion Daily AMZN Bull 1.5X Shares (AMZU A)
2. Direxion Daily GOOGL Bull 1.5X Shares (GGLL A)
3. Direxion Daily MSFT Bull 1.5X Shares (MSFU A-)
4. Direxion Daily AAPL Bull 1.5X (AAPU B+)

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