Category Archives: TQQQ

ETF Closures and Splits

With recent volatility, many readers have wondered about two issues they’ve read about regarding leveraged funds: can they “blow up” entirely, and what would a reverse split do to account values? I’ll cover them in order. Let’s define “blow up” as liquidate and stop trading. Many investors assume that because leveraged ETFs (LETFs) move at […]

Also posted in Leverage, Portfolio Management | Comments closed

TQQQ is Unlikely to Hit Zero in One Session

The following is from the comments section of last Sunday’s Kelly Letter. Q. Subscriber Kenneth asked: What happens if the QQQ loses 34% in a day? Does TQQQ go below zero? A. I answered: It would bottom somewhere just above zero, effectively eliminating the investor’s position. However, this is unlikely to happen. From “Research Behind […]

Also posted in 9Sig | Comments closed

Tech is Rested and Ready

Since March 20, 2020, the Nasdaq 100 has risen 95% compared with 82% for the S&P 500. Year-to-date, however, they switched leadership positions: Price Change Since 3/20/20 (%) – – – – – – – – – – – – – – – 95.3 Nasdaq 100 82.1 S&P 500 Price Change Year-to-Date (%) – – […]

Also posted in Technology | Comments closed

The Power of Price Reaction

The Kelly Letter’s first-quarter signals told us to sell shares of IJR and MVV, and buy shares of TQQQ. Since our orders filled on April 5, here’s how the three funds have performed: Price Change Since April 5 Order Fills (%) – – – – – – – – – – – – – – […]

Also posted in Sig System | Comments closed

Managing TQQQ Volatility to Higher Performance

The following is from this year’s Note 16 of The Kelly Letter, which went out to subscribers last Sunday morning. On Wednesday, April 17 the Nasdaq 100 (NDX) reached an intraday high of 7715, above its previous all-time high of 7701 on October 1. The event enabled my research partner Roger to log an important […]

Also posted in 9Sig, Kelly Letter Excerpt, Kelly Letter Success, Leverage | Comments closed
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