With a lot of bullish commentary about the market, I don’t fear conducting a month-end play. The month of November has been good for stocks in comparison to September to October. And historically this time of year carries with it positive sentiment.
Over the last week, I’ve been closely watching GGLL (GGLL 0.00%↑) — Direxion Daily Google ETF. This particular ETF tracks GOOG (GOOG 0.00%↑), a second tier of Alphabet stocks. The first tier is GOOGL (GOOGL 0.00%↑), and the difference between the two is the Google stock with L carries voting rights, whereas the one without has no voting rights.
GGLL is a leveraged ETF with a 1.5x daily performance return, meaning if GOOG returns 1% for the day, GGLL returns 1.5%. Conversely, if GOOG has a negative return for the day of -1%, then GGLL returns -1.5%.
With a positive trend of the Nasdaq and a positive sentiment about the US economy and with GGLL faltering today, these are indicators that the last day of November (and even the first day of December) could be a nice bounce in this ETF.
My target entry is $30.55, and my target exit is $32. (Oh and as I write this, my order was triggered!) Let’s see how the last day of the month ends for GGLL and if my hypothesis is correct.
And if my hypothesis is not correct and the market turns down, then I would still be okay because GGLL is pegged to GOOG, and that stock will not falter for long. So then, it becomes a waiting game. In other words, I’ve hedged my risk by investing in an ETF backed by one of the biggest companies in the world.
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