🔥Direxion ETF Weekly Trading Themes: AI Weakens, Small Caps Lead & MU

Charts in Focus

Tech / Mag 7 Rotation Out, Small Caps Rotation In
$Direxion NASDAQ-100 Equal Weighted Index Shares(QQQE)$ clearly benefited from the pullback in the NASDAQ 100.

Trading Themes for the Week from Direxion

1. $Direxion Daily MU Bull 2X Shares(MUU)$

Assets under management are once again approaching USD 400 million.
MU shares have risen after HSBC initiated coverage with a Buy rating, calling it a “key beneficiary of an extended supercycle.”
Post-earnings volatility expected around ±8.3% following Wednesday’s report.

2. $Direxion Daily AVGO Bull 2X Shares(AVL)$ / $Direxion Daily AVGO Bear 1X Shares(AVS)$

Broadcom’s post-earnings sell-off triggered a sharp surge in trading volume for AVL/AVS.
AVGO has now broken below its 50-day moving average.

3. $Direxion Daily NVDA Bull 2X Shares(NVDU)$ / $Direxion Daily NVDA Bear 1X Shares(NVDD)$

Wall Street Journal: Nvidia chips exported to China will require U.S. security reviews.

4. $Direxion Daily Financial Bull 3x Shares(FAS)$ / $Direxion Daily Financial Bear 3x Shares(FAZ)$

Large bank stocks declined after JPMorgan warned of sharply rising cost pressures.
At last week’s Goldman Sachs financial conference, banks were broadly optimistic about 2026.
Key themes: consumer resilience, AI-driven efficiency gains, and optimism around capital markets activity.

5. $Direxion Daily Small Cap Bull 3x Shares(TNA)$

Rotation out of tech and into underperforming small-cap stocks is fully underway.
Despite fund outflows this week, the index continues to trend higher.

6. $Direxion NASDAQ-100 Equal Weighted Index Shares(QQQE)$

Well-positioned in the current environment of tech weakness.
Monthly performance has outpaced the NASDAQ 100.

7. $Direxion Daily NFLX Bull 2X Shares(NFXL)$

Inflows rose by USD 55 million last week as post-WBD weakness attracted dip buyers.
Two consecutive doji candles closed the week.
Rising OBV and MACD suggest a reliable mean-reversion signal, confirming a potential price bottom.

8. $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$

Net outflows this week, but a notable USD 391 million inflow occurred during Friday’s session following Broadcom’s weak earnings.

9. $Direxion Daily ORCL Bull 2X ETF(ORCU)$ / $Direxion Daily ORCL Bear 1X ETF(ORCS)$

Some Oracle data center projects for OpenAI have been delayed from 2027 to 2028.
Delays mainly due to labor and materials shortages.

10. $Direxion Daily Pharmaceutical & Medical Bull 3X Shares(PILL)$

The sector gapped higher ahead of last Monday’s FOMC meeting on expectations of rate cuts.

11. $Direxion Daily Regional Banks Bull 3x Shares(DPST)$

Extended gains for a fourth consecutive week, as lower rates are expected to boost lending and new mortgage activity.

12. $Direxion Daily Homebuilders & Supplies Bull 3X Shares(NAIL)$

Lennar earnings after Tuesday’s close are in focus.
Market expectations for Fed easing could significantly influence homebuilder performance.

13. $Direxion Daily HOOD Bull 2X ETF(HODU)$

Currently the most volatile fund over the past 30 days, with volatility around 187%.

14. $Direxion Daily GOOGL Bull 2X Shares(GGLL)$ / $Direxion Daily GOOGL Bear 1X Shares(GGLS)$

Google shares have pulled back after becoming a new AI favorite.
This may be forming a classic bull flag—worth watching how far traders are willing to push prices lower.

15. $Direxion Daily Consumer Discretionary Bull 3x Shares(WANT)$ / $Direxion Daily Retail Bull 3X Shares(RETL)$

Nike and FedEx serve as key indicators for discretionary spending and consumer purchasing power.

16. $Direxion Daily S&P Biotech Bull 3x Shares(LABU)$

Long-term trends remain intact, but the ETF failed near the February 2024 high around USD 177.
Biotech is predominantly a small-cap sector and stands to benefit from a sustained easing cycle.

17. $Direxion Daily CSI China Internet Index Bull 2x Shares(CWEB)$

China is reportedly considering a stimulus package of up to USD 70 billion to support its semiconductor manufacturing industry.

18. $Direxion Daily S&P 500 Bear 1X Shares(SPDN)$

Trading volume increased last week.

19. $Direxion Daily Magnificent 7 Bull 2X Shares(QQQU)$

Gapped lower, broke below the 100-day moving average, with RSI falling to 35.
At what levels do the Mag 7 become attractive buying opportunities?

20. $Direxion Daily BRKB Bull 2X Shares(BRKU)$

Notable inflows during Friday’s session.

21. $Direxion Daily Gold Miners Index Bull 2X Shares(NUGT)$ / $Direxion Daily Junior Gold Miners Index Bull 2X Shares(JNUG)$

Both reached year-to-date highs after Trump stated that interest rates could be 1% lower a year from now.

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