TQQQ Surges 10%: Why the Sentiment Changed in Just One Day

On November 9, while the Nasdaq rose 2.7%, the TQQQ jumped 10.20%. Although it recorded a double-digit gain in a single day, the Nasdaq fell 0.74% the following day as concerns over interest rates and inflation resurfaced.

Since the TQQQ tracks the daily return of the Nasdaq 100 at three times the leverage, its movements are as significant when it falls as they are when it rises. It is natural to focus on the daily return, but it is difficult to predict the direction of the next day based solely on those numbers.

In times like these, I revisit my VR investment principles. After all, my job is to first check whether the conditions for rebalancing are met and how much remains in my cash pool.

Photo · bfishadow / Wikimedia Commons / CC BY 2.0 · File photo taken in 2007