Day trading for quick small gains.

 https://www.reddit.com/r/stocks/comments/fkrbxd/spxl_and_spxs_day_trading_for_quicksmall_gains/

It's a valid strategy in this market, imo. If you understand the risk. As leveraged ETFs they move extremely quickly, but otherwise mirror the SPX/SPY so if you're scalping and just watching for basic short technical indicators like 3 bar plays honestly i think you're fine. Safer than my strategy of swing trading SPXS options. 😂 the risk is how quickly they deflate when the underlying moves against it, because of the leveraged position.

The only thing you have to be right on is the direction of the trend. So if SP500 is clearly bullish on the daily chart (let's say over the last 30 days), you likely have a >50% chance of being right on picking SPXL (long) or SPXS (short)

Quantum Computing: At the Cusp of a Revolutionary Era

Quantum computing, long considered a theoretical frontier, is now proving its transformative potential. 

With significant breakthroughs, expanding market interest, and a surge in investments, the field is poised to redefine technology and the economy.

Recent Technological Breakthroughs

Google's recent unveiling of its quantum chip, Willow, highlights the technological strides being made. Willow achieved a computation in under five minutes—a task that would take classical supercomputers 10 septillion years. This accomplishment underscores quantum computing's ability to tackle problems previously deemed unsolvable. IBM's advanced quantum processors are enabling longer and more complex quantum circuits, paving the way for robust applications.

While these achievements demonstrate quantum computing’s power, startups are also playing a crucial role in accelerating the industry’s progress. Companies like Quantum Computing Inc. ($QUBT) are making waves with accessible quantum-ready solutions tailored for industries like finance, logistics, and healthcare. Their focus on software-driven quantum applications positions them as key players in bridging theoretical research and practical deployment.

Startups Driving Innovation

Beyond Google and IBM, quantum computing startups like Rigetti Computing, IonQ, and D-Wave are at the forefront of innovation:

• Quantum Computing Inc. ($QUBT): Known for its quantum-as-a-service (QaaS) approach, $QUBT has gained attention for delivering real-world quantum solutions. The company’s stock has more than doubled recently, reflecting growing confidence in its potential.

• Rigetti Computing: A leader in hybrid quantum-classical computing, Rigetti’s shares surged over 1,000% this year. Their cloud-based quantum solutions are already being used by enterprises to optimize complex systems.

• IonQ: Specializing in trapped-ion technology, IonQ is advancing error correction and scalability, addressing two of the most critical challenges in quantum computing.

• D-Wave: Focused on quantum annealing, D-Wave is delivering applications for optimization problems, particularly in sectors like manufacturing and logistics.

Market Growth and Economic Potential

The quantum computing market is entering a high-growth phase. In 2024, the market size was approximately $1 billion, but it is projected to grow to $5 billion by 2030, with a compound annual growth rate (CAGR) of 36%. Under optimistic scenarios, the market could reach $15 billion by 2030. By 2040, quantum computing is expected to contribute up to $850 billion in economic value, with a supporting hardware and software market valued at $170 billion.

Investment and Industry Momentum

Investor interest in quantum technologies is surging, even in a cautious economic environment. Venture capitalists poured $1.2 billion into quantum startups in 2024. This influx of funding reflects growing confidence in the industry’s potential to deliver transformative results. Publicly traded companies, such as $QUBT and Rigetti Computing, have seen remarkable stock performance, underscoring market enthusiasm.

Challenges and Future Outlook

Despite its promise, quantum computing faces significant hurdles, including qubit stability, error correction, and scaling. However, recent advancements are rapidly addressing these challenges. For example, $QUBT’s software-centric approach simplifies the integration of quantum solutions into existing systems, bypassing some hardware limitations.

The convergence of technological advancements, startup innovations, and investment momentum suggests that quantum computing is at a decisive juncture. As challenges are overcome and applications expand, quantum computing is set to revolutionize industries ranging from pharmaceuticals to artificial intelligence.

Conclusion

Quantum computing is no longer a distant dream but a burgeoning reality. With established players and agile startups driving innovation, the field is on the cusp of delivering unprecedented technological and economic value. Investors, researchers, and industries alike are gearing up for a quantum-powered future, and the time to embrace this revolution is now.

Leveraged SPY tickers: SSO and SPXL

The most liquid leveraged asset tracking the S&P 500 (which SPY also tracks) is the ProShares Ultra S&P 500 (SSO) for 2x leverage, and the Direxion Daily S&P 500 Bull 3x Shares (SPXL) for 3x leverage.

2x Leveraged ETF

The ProShares Ultra S&P 500 (SSO) is the most liquid 2x leveraged ETF tracking the S&P 500. It has the following characteristics:

- Three-Month Average Daily Volume: 6,458,386

- Assets Under Management: $3.0 billion

- Expense Ratio: 0.89%

SSO seeks daily investment returns that are twice the daily performance of the S&P 500 Index, before fees and expenses.

3x Leveraged ETF

For 3x leverage, the Direxion Daily S&P 500 Bull 3x Shares (SPXL) has the highest liquidity. Its key features include:

- Three-Month Average Daily Volume: 14,277,112

- Assets Under Management: $2.7 billion

- Expense Ratio: 0.97%

SPXL aims for daily investment returns of 300% of those of the S&P 500 Index.

It's important to note that these leveraged ETFs are designed for short-term trading and not for long-term holding, as they reset their leverage daily, which can lead to compounding of returns when held for extended periods.

Microaccelerations: The Power of Small Gains in Portfolio Management

 Microaccelerations: The Power of Small Gains in Portfolio Management

In the world of investing, it's often tempting to focus on big wins and dramatic market movements. However, the concept of Microaccelerations—taking small, consistent gains of 2-3% or even up to 10%—can significantly boost overall portfolio performance over time. This strategy, when applied judiciously, can lead to substantial cumulative returns and help investors navigate market volatility more effectively.

The Compounding Effect of Small Gains

Microaccelerations work on the principle of compound growth. By consistently realizing small profits and reinvesting them, investors can harness the power of compounding to accelerate portfolio gains. This approach is particularly effective in sectors known for their volatility and growth potential, such as technology, semiconductors, and financial services.

Examples in Action

Chip Stocks

Consider the semiconductor industry, which has seen significant growth and volatility in recent years. Let's look at Advanced Micro Devices (AMD) as an example:

An investor who bought AMD stock at $75 and sold it at $77.25 (a 3% gain) could have repeated this process multiple times throughout the year. While each individual gain seems small, the cumulative effect can be substantial, especially when compared to a buy-and-hold strategy during periods of sideways trading[8].

Tech Stocks

In the broader technology sector, companies like Super Micro Computer (SMCI) have shown potential for microacceleration strategies:

SMCI's stock has experienced significant volatility, with rapid price movements in both directions. An investor employing a microacceleration strategy could have capitalized on these fluctuations by taking small gains of 2-3% during upswings, potentially outperforming those who held through the downturns[2].

Financial Stocks

Financial stocks, known for their sensitivity to economic cycles, can also benefit from a microacceleration approach. For instance, consider a hypothetical scenario with Morgan Stanley (MS):

An investor could have bought MS shares at $80 and sold at $84 (a 5% gain), repeating this process during periods of market optimism. This strategy could have yielded multiple small gains throughout the year, potentially outperforming a buy-and-hold approach during periods of sector volatility[2].

Benefits of Microaccelerations

1. Risk Management: By taking small, frequent gains, investors can reduce exposure to sudden market downturns.

2. Emotional Discipline: This strategy encourages a disciplined approach, helping investors avoid the pitfalls of emotional decision-making.

3. Flexibility: Microaccelerations allow investors to adapt quickly to changing market conditions and sector rotations.

4. Compounding Opportunities: Frequent small gains create more opportunities for reinvestment and compounding.

Considerations and Caveats

While Microaccelerations can be powerful, they require careful execution:

1. Transaction Costs: Frequent trading can incur higher transaction costs, potentially eating into gains.
2. Tax Implications: Short-term capital gains may be taxed at a higher rate than long-term holdings[6].
3. Market Timing Challenges: Consistently timing small market movements can be difficult and requires vigilance.

Conclusion

Microaccelerations offer a compelling strategy for investors looking to optimize their portfolio performance. By capitalizing on small, frequent gains across sectors like semiconductors, technology, and finance, investors can potentially accelerate their overall returns. However, this approach requires careful planning, disciplined execution, and consideration of individual financial circumstances. As with any investment strategy, it's crucial to balance the potential benefits with the associated risks and costs.

Citations:

[1] https://www.bcg.com/industries/principal-investors-private-equity/portfolio-acceleration

[2] https://investorplace.com/2024/05/3-chip-stocks-to-buy-to-invest-in-ais-brain/

[3] https://www.investopedia.com/articles/basics/11/5-portfolio-protection-strategies.asp

[4] https://firstrate.com/blog/evaluating-the-portfolio-construction-process-part-two-micro-attribution

[5] https://www.youtube.com/watch?v=W1KoE6kGsq4

[6] https://artafinance.com/insights/what-is-direct-indexing

[7] https://www.youtube.com/watch?v=CbrIDzThDJM

[8] https://finance.yahoo.com/news/chip-stocks-could-rocket-2025-112000781.html

[9] https://www.tawcan.com/living-off-dividends-tax-free/

Accelerate your portfolio, and insulate against downturn

To accelerate your portfolio and insulate against pullbacks using beta, consider the following strategies:

Understanding Beta

Beta is a measure of a stock's volatility relative to the overall market. 

A beta of 1 indicates that the stock moves in line with the market, while a beta greater than 1 suggests higher volatility, and less than 1 indicates lower volatility.

Accelerating Your Portfolio

1. Strategic Beta Approaches

   Strategic beta, also known as smart beta, uses rules-based indexing to potentially outperform cap-weighted indexes. These strategies can:

• Provide cost-effective exposure to factors that may enhance returns
• Offer greater style purity and transparency
• Serve as a complement to traditional active and passive strategies

2. Multi-factor Strategies

   Incorporating multi-factor strategic beta approaches can replace or complement core equity exposures. These strategies aim to capture multiple return drivers, potentially improving overall portfolio performance.

3. Factor Rotation

   Consider rotating portfolio exposures to different factors such as value, momentum, or quality based on market conditions. This dynamic approach can help capitalize on changing market environments.

Insulating Against Pullbacks

1. Low-Beta Stocks

   Allocate a portion of your portfolio to low-beta stocks, which tend to be less volatile during market downturns. These stocks may provide more stability during pullbacks.

2. Market Neutral Strategies

   Consider ETFs like the AGFiQ U.S. Market Neutral Anti-Beta ETF (BTAL), which goes long on low-beta stocks and shorts high-beta stocks. This strategy can potentially generate positive returns during market corrections.

3. Cash Flow Protection

   Identify near and intermediate-term cash flow needs and insulate them from stock market volatility[2]. Allocate these funds to safer assets like high-quality bonds to protect against forced selling during market downturns.

4. Beta-Weighted Portfolio Analysis

   Use beta-weighting tools to analyze your overall portfolio exposure relative to a benchmark like SPY[6]. This allows you to adjust your positions to maintain a desired risk profile as market conditions change.

5. Structured Products

   For suitable investors, incorporating structured products can offer downside protection while still providing upside potential. These can be tailored to specific market scenarios and risk tolerances.

Balancing Acceleration and Protection

1. Diversification

   Maintain a diversified portfolio across ideas and business drivers to take advantage of opportunities while managing risks[8].

2. Valuation Discipline

   Avoid overpaying for stocks based on current valuations for future growth prospects. This can help protect against excessive losses during market pullbacks.

3. Active Risk Management

   Implement dynamic risk management strategies, such as setting trailing stop losses for individual positions. This can help lock in gains and limit downside exposure.

By combining these strategies, you can potentially accelerate your portfolio's growth while also building in safeguards against market pullbacks. Remember to regularly review and rebalance your portfolio to maintain your desired risk-return profile.

Citations:

[1] https://www.jhinvestments.com/viewpoints/investing-basics/understanding-strategic-beta

[2] https://www.brightonjones.com/blog/investing-lessons-financial-crisis/

[3] https://seekingalpha.com/article/4327195-etf-portfolio-hedging-strategy-2-turning-beta-anti-beta-btal

[4] https://www.investopedia.com/articles/07/alphabeta.asp

[5] https://privatebank.jpmorgan.com/nam/en/insights/markets-and-investing/building-a-robust-investment-portfolio-3-ideas-for-how-to-diversify

[6] https://www.youtube.com/watch?v=A-nTVuOaAjo

[7] https://advisor.vcm.com/blog/strategic-beta-how-to

[8] https://www.thearmchairtrader.com/protect-portfolio-stocks-recession/

[9] https://www.fidelity.com/learning-center/investment-products/etf/smart-beta

[10] https://www.kiplinger.com/personal-finance/603306/8-ways-to-insulate-yourself-from-inflation

[11] https://www.schwab.com/public/file/P-9017169

Respect, to my Guru Brian P Anderson

 Personally would like to say thanks to Brian. Thanks to Langham trading, could evolve a pretty consistent system. Brian taught me two things:

1. Enter at the right price

2. Exit when you meet you target and most importantly strike in the hour and move on with your ilfe.

Its not about spending many hours, its about doing it a little (1 hour) and consistently
Over time the returns average up irrespective.

If you want to read more on him, read his book, Here is the excerpt

Is the market beating you up? Do you feel like you're taking one step forward, 2 steps back with your investment income? Would you like a proven, step-by-step strategy for generating consistent trading profits? 

Trading is one of the few ways to realistically create your own "Rags to Riches" Story. But it's not a get rich quick strategy that will get you there. The secret is to adopt a laser beam focus on ONE specific strategy until you've mastered it. 

In "The 1 Hour Trade," you'll get a detailed, step-by-step blueprint that works. Unlike other trading books giving you investment theory, you'll be taught a successful strategy in its entirety, including the specific scanning parameters for locating the trades, the exact analysis decisions you'll need to qualify the trade, and the specific steps to take to execute the trade and come out with a profit.

https://www.amazon.com/Hour-Trade-Strategy-Langham-Trading/dp/1503095932

Btw, he taught all of this over a free chat session. Very unassuming and an amazing Guy.

Did Buy his book :)

Thank you, Brian

$KEY $RF and one more

 

3 Regional Bank Stocks to Buy on Relaxed Regulations

https://x.com/gnvenky/status/1869380994220093495

the-best-stocks-to-invest-50000-in-right-now $NVDA and ..

 https://www.fool.com/investing/2024/12/15/the-best-stocks-to-invest-50000-in-right-now/?source=djc&utm_source=djc&utm_medium=feed&utm_campaign=article&referring_guid=b4919ff4-a9f7-408f-aa08-8bc99b12db52&mod=mw_quote_news

$META $GOOG $AMZN

What up with $AMD?

 Its a cycle, that what it is...

Wait your turn AMD

$NVDA ==> $MRVL ==> $AVGO ==> $TSM ===> $MU ==> $AMD ==> $INTC

is a possible cyclic order.

Advanced Micro Devices (AMD) appears to be undervalued based on several valuation methods:

1. Discounted Cash Flow (DCF) Model:

   - Fair value estimate of $219 per share, suggesting AMD is undervalued by approximately 21% at its current price[1].

   - Another DCF model estimates the intrinsic value at $153.72, indicating AMD is undervalued by 15%[4].

2. Relative Valuation:

   - AMD's market cap should be 16-20% of Nvidia's, implying a fair value range of $228 to $285 per share[3].

3. Analyst Estimates:

   - Analysts' price target is $187, which is 17% higher than the DCF estimate of $219[1].

4. Price-to-Earnings (P/E) Ratio -- not a huge fan, but nevertheless:

   - AMD's current P/E ratio of 112.8x is higher than the industry average of 31.9x, suggesting it may be overvalued on this metric[6].

   - However, AMD's high P/E may be justified by its strong growth prospects in the AI market[3].

5. Growth Potential:

   - AMD is well-positioned in the rapidly expanding AI market, with estimates suggesting it could capture 20% of the $400 billion AI TAM by 2027[3].

While some models suggest overvaluation, the majority of analyses indicate that AMD is undervalued, especially considering its growth potential in the AI sector. Investors should consider AMD's strong position in the semiconductor industry and its potential for future growth when evaluating its current valuation.

Citations:

[1] https://finance.yahoo.com/news/advanced-micro-devices-inc-nasdaq-120014673.html

[2] https://www.macroaxis.com/valuation/AMD/Advanced-Micro-Devices

[3] https://www.reddit.com/r/AMD_Stock/comments/1b9cxi5/bullish_on_amd_valuation_argument/

[4] https://www.alphaspread.com/security/nasdaq/amd/summary

[5] https://www.alphaspread.com/security/nasdaq/amd/dcf-valuation

[6] https://simplywall.st/stocks/us/semiconductors/nasdaq-amd/advanced-micro-devices/valuation

[7] https://www.youtube.com/watch?v=05z36fSoWIo

Trip.com: A worthy stock to hold

 The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For example, the Trip.com Group Limited (NASDAQ:TCOM) share price has soared 156% in the last three years. How nice for those who held the stock! On top of that, the share price is up 37% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.

https://finance.yahoo.com/news/trip-com-group-nasdaq-tcom-141736160.html