$Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ SOXL Short Covering Potential is massive, more so than its underlying Semi stocks components. Remember SOXL was held back by Shorts in late second week of January 2025, when most Semiconductor stocks were up, and people here got frustrated, then Suddenly the Short Covering in SOXL started on 1/15/25, kept going till 1/23/25.. SOXL etf went from $26 to $35.5, a staggering 40% jump in just week of time. SOXL etf typicaĺly has more Short Positions than its underlying AI/Semi component stocks have, therefore there is a timing delay to react.. once Short squeeze Starts in SOXL, the effect is much greater. When semi stocks going up, Short Covering in SOXL will follow later in much greater magnitude.
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