Ed Egilinsky, managing director and head of sales and distribution & alternatives with Direxion, joined Cheddar News to discuss how bond traders are reacting to the latest consumer price index data and how they're positioning portfolios ahead of next week's release of Nvidia's earnings. Egilinsky also discussed some of the other bigger-cap companies, including Alphabet, Amazon and Apple.

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<div class="block">Ed Egilinsky, managing director and head of sales and distribution &amp; alternatives with Direxion, joined Cheddar News to discuss how bond traders are reacting to the latest consumer price index data and how they&#39;re positioning portfolios ahead of next week&#39;s release of Nvidia&#39;s earnings. Egilinsky also discussed some of the other bigger-cap companies, including Alphabet, Amazon and Apple.</div>

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How Bond Traders Reacted to Latest Inflation Data and Prep for Nvidia Earnings

And our next segment trader nation brought to you by direction. ETF we explore how investors and traders can position their portfolios for the future with directions, expanded suite of ETF. So joining me now is a managing director at direction and thank you for joining. Good morning. All right, let's talk about how bond traders are reacting to the most recent inflation data that we got this week. Sure, as you mentioned yesterday's CP I number, today's PP I number uh were more muted than expected. Uh What that means is inflation is starting to subside at least based on those data points. And as a result of that, uh interest rates are starting to drop uh since the fed meeting in the beginning of November, uh bond prices have rallied. That means uh in the case, uh interest rates would decline. Um So short term traders right now uh are um investing more or trading more in our TMF, which is a triple leverage treasury on the 20 plus year treasury. Uh So they are looking at short term moves with interest rates down. Uh But when you look at October, just to show that these are for active short term trading purposes, rate, interest rates were rising in October. Uh So we have some short term traders taking advantage of our bearish play on bonds, which is TMV. So uh with our leverage and inverse vehicles, it's important to note these are designed as short term trading vehicles uh and should be monitored on a day to day basis. Invidia results always a big market mover and those are on tap here in the coming days. How are traders positioning themselves going into Nvidia's earnings? Well, we're seeing some significant trading activity both with our uh leverage B 1.5 times NVIDIA as well as our bear inverse uh which is NVDU on the bull side, NVDD on the bear side. Uh So we usually see pick up in our leverage and inverse single stock. ETF S people want to express a short term view uh especially going into earnings. And there's a lot for bulls to be excited about from a short term perspective, NVIDIA stock is approaching new all time highs. It's been up 10 consecutive days. That's the longest streak uh in seven years. Uh So a lot of uh short term traders will be listening to that conference call uh in light of uh us uh restrictions on exports of A I chips to China that could affect Nvidia's revenue stream. Uh And uh President Xi and, and Biden meeting uh could be interesting for the chip makers in general in terms of maybe loosen up uh restrictions in general. So some of the people going into this earnings, you can make the case from a beer perspective, short term bear perspective that the uh valuations are very lofty right now in NVIDIA. Um So we'll see what happens, but it'll be a good gauge for the broader tech sector and semis as well, right? So it sounds like there are potentially some trading opportunities uh that could be impacted by these results. Well, definitely, uh you know, NVIDIA is a bellwether for both the broader uh tech sector uh as well as uh the semiconductors in general. And we have a couple of short term trading vehicles uh for people that want to ex express a bullish or bearish view on the semiconductors at Sox L and Sox, Sox L is our most popular uh tradable ETF those are triple leverage bulls and bear products on the broader semiconductor space and also the tech sector as well. If people want to trade those short term, we have a triple leverage bull and bear on tech and tech as well. What are some ways for active traders to trade the biggest market cap weighted stocks really in either direction? Well, some of you, some of your viewers might look at some of the bigger mega cap names. Uh They've been called the Magnificent Seven and that includes the, the likes of Amazon, Google, Microsoft, Apple, Tesla, NVIDIA, uh as well as meta, we have uh leverage and inverse single stock uh ETF s on six of those seven excluding uh meta. And so for those individuals that want to take a short term bullish view, uh we have 1.5 times bull for those that feel that right now, maybe some of those stocks are overextended, they may want to look at a non leverage inverse meaning uh that there for the stock to go down. So we have on all of those except meta, a non leverage inverse to the bear side. Uh A lot of people have probably made some good profits this year. Uh If they bought uh those magnificent seven in 2023 they may want to hedge uh some of those gains and that's where like a non leverage bear ETF on the single stock might come into play for them to utilize. Interesting, how can an investor and potentially diversify their stock portfolio beyond just the typical market cap weighted indices like the S and P and the NASDAQ? Well, as you know, it's, it's been a year dominated by the mega caps, the names I just mentioned and the NASDAQ 100 is weighted to where uh it's a market cap weighted index. So those stocks are gonna represent the biggest percentage about 40% of the NASDAQ 100. Uh That's been the big driver returns this year. So some clients from an equal weight perspective would like more diversification within the NASDAQ 100 less concentration risk in tech. Uh So we're seeing some interest in our Qqqe, which is a little more of a strategic asset allocation. Contrary to what I've talked about for the most part, which are very short term trading vehicles. Uh So an equal weight, NASDAQ 100 could be a good diversify within somebody's large cap equity exposure. All right. Thank you for joining very timely segment and to find out more about how direction ETF enable you to seek profit and manage risk and all market conditions you can visit www dot direction dot com. Before investing carefully, consider funds, investment, objective risks, charges and expenses contained in the prospectus at direction dot com. Read carefully.