Retail traders are doubling down on semiconductor stocks with borrowed money, even as prices crater.
$SOXL, the 3x leveraged chip ETF, pulled in $5.1 billion last week—its second-biggest weekly inflow ever. The only time it saw more? $6.1 billion in mid-October.
Here's the wild part: the fund is down 40% over that same stretch. Yet in the past four weeks alone, $13.4 billion has poured in.
Monday brought a 22% bounce in $SOXL, likely fueled by this wave of retail buying.
Meanwhile, $QQQ saw $3.7 billion in inflows last week and $5.7 billion the week before—the strongest two-week run since August.
Retail is clearly in buy-the-dip mode, leveraged and all-in on chips and tech. Whether this marks a bottom or sets up for more pain depends on whether fundamentals can catch up to sentiment.
$SOXL, the 3x leveraged chip ETF, pulled in $5.1 billion last week—its second-biggest weekly inflow ever. The only time it saw more? $6.1 billion in mid-October.
Here's the wild part: the fund is down 40% over that same stretch. Yet in the past four weeks alone, $13.4 billion has poured in.
Monday brought a 22% bounce in $SOXL, likely fueled by this wave of retail buying.
Meanwhile, $QQQ saw $3.7 billion in inflows last week and $5.7 billion the week before—the strongest two-week run since August.
Retail is clearly in buy-the-dip mode, leveraged and all-in on chips and tech. Whether this marks a bottom or sets up for more pain depends on whether fundamentals can catch up to sentiment.
