$Micron Technology(MU)$ $SanDisk Corp.(SNDK)$ $hynix-WI(SKHYV)$ $iShares Semiconductor ETF(SOXX)$ $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ Every time a leveraged ETF targeting a single stock launches, that stock seems to crash. The stated purpose is better exposure for individual investors, but in reality, it just provides ammunition for price manipulation. High-speed traders can use the options and derivatives tied to these ETFs to move the underlying stock.
Stocks rarely move with such sustained, high volatility over weeks. Daily 10% swings are not stability, and it's driving wealthier investors out of the market.
Look at MU, Nvidia, and SanDisk. SK Hynix could be next. Market makers aren't providing enough liquidity to stabilize these stocks, and there's virtually none for the ETFs themselves.
I hope these single-stock leveraged ETFs get banned in the US. They claim to provide liquidity but seem to do the opposite, creating a clear avenue for manipulation.
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