Ed Egilinsky, the managing director and head of alternative investments at Direxion, talks all things stocks. 

<div class="block">What to expect with Nvidia earnings, why there has been a pullback in artificial intelligence stocks, and what&#39;s next for energy stocks? Ed Egilinsky, the managing director and head of alternative investments at Direxion, talks all things stocks. </div>
<div class="block"><i>This segment was sponsored by </i><i>Direxion</i><i>.</i>
</div>

Need2Know Headlines

Nvidia Earnings, A.I. Investors & Energy Markets: Talking Stocks With Direxion's Ed Egilinsky 

In our next segment. Trader nation brought to you by direction, ETFS. We explore how investors and traders can position their portfolios for the future with directions, expanded suite of ETFS. So joining me now is managing director and head of sales distribution and alternatives at direction. As I mentioned, all eyes on NVIDIA, certainly ahead of their earnings report. How are traders positioning themselves for this? Well, good morning, definitely NVIDIA tonight. Certainly at bellwether, as you said, for semis and the tech space, you know, we have a lot of leverage in inverse ETF S that active traders are looking to take advantage of headlines or in this case, pre and post earnings. So we are seeing some activity video in our triple leverage semiconductor uh index. Uh So L and SOX S, that's the bull and bear respectfully of the triple leverage. NVIDIA is the largest holding in the ice semiconductor index. Uh It's also one of the largest uh ratings within the S and P technology select sector index. Uh So we have triple leverage bull and bear there on tech L and tech S. Uh we're seeing more flows going into earnings on the both side particularly with the. So, uh, you know, you've had a number of analysts upgrade price targets, uh this week going into earnings with NVIDIA. Uh, also you look at it's technically pushed for those that use technicals above its 50 day moving average and they're expecting some volatility post earnings tonight. The option implied volatility is about 11% swing in either direction depending on the report. Well, we have seen a pullback in AI stocks recently, I think kind of just a breather some would say, but do you think based on your data that it is a short term blip or maybe signs of a bigger change? Well, certainly the trend has been higher until August, as you said, uh you know, we have a two X bull uh fund U bot uh that tracks the index, Global Robotics and A I index. Some of you might know the non leveraged ETF bots. Uh So that's down 12% for the month U bots down over 20. Uh So some people might consider this a buy on the dip. Uh We also have some leverage and inverse single stock ETF S uh in the mega cap space. Uh 1.5 times non leverage, inverse bear on the likes of uh Tesla, Microsoft, Apple, Google and Amazon that are all directly or indirectly involved in A I. Certainly there's been some technical breakdowns on the 50 day, moving average of people looking at that for Tesla Microsoft and Apple. Uh for those that don't want to actively trade with leverage and inverse uh if they wanted exposure on the long side in the A I space, we have a non leveraged ETF called moon. Uh It's an innovative ETF it tracks the S and PK show index. It's early stage growth companies that are in the sub themes like biotech, electric vehicles, alternative energy robotics, et cetera. And about 25% of the of the uh stocks within moon uh are involved in in A I. Well, let's talk about China as certainly a place where technology has dominated. But we've seen some weak economic data of latest slowdown in the economy since COVID geopolitical risks also certainly are a factor here. Does that present an opportunity for traders? Well, you've had a little bit of a rebound in China going into August but it still has underperformed the US markets year to date. And August has been a real difficult month as you alluded to more weak China data stimulus that hasn't satisfied a lot of investors. You have the Chinese were on at 16 year lows against the US dollar. So we're seeing more individuals from a trading perspective, trading our triple leverage footie China 50 that's a large cap China stocks that's in. But you're also seeing some flows into Yang, which is the triple leverage inverse as well. When you look at tech, a lot of people are familiar with K Web, we have a QX called C Web on the Bull side that gives you two times the exposure web on a daily basis. There's been a lot of interest there, but there's been a pullback recently as well with that, primarily because of us China relations, particularly on the tech regulations and how strict that's going to be. So that's short term. Certainly the Bear side has been the way to play it. There's a lot of earnings over the next two weeks within those two indices. Uh both on the China 50 side as, as well as the C SI internet uh overseas internet index. So uh a lot of people could play the earnings as well on a short term basis uh in those areas. Uh And lastly, I'll just mention the Bricks Conference this week. That'll be interesting what happens uh with China being in attendance as well. Ok. Energy stocks. They've been a bright spot that we've seen in August. How can active traders ride that wave or fade to move higher? Well, we, we're seeing interest uh in both the bull and bear this month uh particularly in the mega CAPP Energy Space. Uh we have a two times bull and bear off the energy select sector index. But the bigger uh upside this month we've seen in the oil and gas exploration and production stocks and that's through uh gush, which is the two X. We also have the Bear uh drip as Well, um, it's interesting that, you know, you've had a significant move higher in crude oil and gasoline. Some of that is seasonality. Uh, part of that could be because OPEC plus sticking to their uh production cuts, but the, the energy stocks actually have outperformed the physical commodity this month. So for those short term active traders, you know, trading energy stocks right now, there are a couple of options for them. They've been an outlier this month. As you know, most of the sectors have been down in varying degrees, particularly ones that have led the market for most part of the year. How could investors look to diversify their portfolios beyond what's been the magnificent seven this year? Well, the magni magnificent seven certainly dominated for sure. Uh The NASDAQ 100 is a market cap weighted index and and over 40% of the index is amongst those seven names. So we have a lot of financial professionals, retail clients that are looking to diversify outside that magnificent seven. So we do have an equal weight, NASDAQ 100 Qqqe, it's non leveraged. Uh for those that want to be more buy and hold investors, this might be appropriate for them. Uh Apple has the same waiting as the 100 stock within the NASDAQ 100 which happens to be lucid right now. So it's an equal way to approach more diversification, potentially less emphasis on tech, more emphasis on some other sectors as well. So it's a way to at least get more broader diversification from a short term trading uh perspective. Uh There are other sectors that you might want to look at outside of, of the tech area that we focused on today, like biotech or financials or real estate. For example, uh that you may want for short term traders take advantage of whether it's on the pool or bear side. All right. Ey, managing director and head of sales distribution and alternatives at direction ed. Thank you. And to find out more about how direction at enable you to seek profit and manage risk in all market conditions. Visit www dot direction dot com. Before investing do carefully consider a funds, investment objective risks, charges and expenses contained in the prospectus at direction dot com.