Moreover, Palantir itself has urged the Pentagon to embrace a software-first approach, lest it risk the U.S. lagging behind global adversaries. Part of the argument is financial. The big data specialist believes that software represents "the most compelling way" to close security gaps between the U.S. and its main rivals.
Both Direxion funds offer enhanced solutions – either leverage or bearish transactions – without resorting to options trading. While trading derivatives can be a rewarding experience, they require additional education to master. With leveraged or inverse ETFs, these products can be acquired much like shares of a publicly traded company.
Of course, no investment opportunity is without risk. For Direxion's PLTU and PLTD ETFs, these vehicles are designed for single-day exposure only. Holding leveraged or inverse funds for longer than recommended may lead to a performance disconnect with the underlying asset due to the daily compounding of volatility.
The PLTU ETF: Having launched in December last year, the Direxion PLTR bull fund got off to a rocking start before succumbing to selling pressure.
- After falling for several sessions, some positive momentum is starting to creep into the PLTU ETF, accompanied by a large boost in volume.
- However, the pronounced peak in late December, followed by a dramatic spike in February, lends credence to the idea that PLTU could be forming a bearish head-and-shoulders pattern.
The PLTD ETF: Also making its debut in December 2024, the Direxion PLTR bear fund is down almost 26% despite not being in the market for that long.
- What might get lost in the narrative is the near-term momentum. In the past month, PLTD has gained nearly 33% of market value.
- Currently, PLTD is sandwiched between its 20-day exponential moving average at bottom and the 50-day moving average at top. However, another negative market event could result in a big spike higher.
Featured image by Jensen Art Co from Pixabay.
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