The ETF Trade: Gold, Palantir, Mag 7 Stocks, Energy and More!
Will that translate also into some upside movement in gold miners if the physical gold trends higher as well? We'll see, but you know, gold mining stocks, a lot of traders, active traders out there like the trade because of the extreme volatility it has both to the up and downside.
Welcome to the program. I'm Thalia Hayden. It's so great to have you watching. If you are new to ETF Guide TV, welcome and be sure to hit that subscribe button. And for our longtime viewers, welcome back and don't forget to post your thoughts in that comment section below. You can also watch our original programs like this one along with ETF battles and the rest of our lineup right here on YouTube along with Apple TV, Amazon Fire TV, and Roku.
Don't miss out. Joining us now is Ed Egilinsky at Direxion. Thank you so much for being here, Ed. It's great to see you again. Yeah, great to be back. All right, let's begin with the Trump administration taking over the White House. Are there any particular ETF categories that could specifically be at play here?
Well, similar to the short-term nature of how you should be looking at our funds for traders, it has been a short time with the Trump administration being in office, but with that said, there are a couple of sectors one could possibly look at to trade. One is certainly the energy sector, particularly the energy stocks with the ongoing geopolitical risk, the potential additional Russian Iran sanctions, who knows what that's going to do for oil prices, and of course the Trump mantra when it comes to energy, drill baby drill.
All of these things combined with the seasonality trade with energy and the cold weather in the US we're seeing right now, there's going to be some opportunity both on the bull and bear side. We have a 2X bull and bear on the energy select sector index, RX Y, as well as the S&P oil and gas exploration and production index, gush and drip couple of other areas to note, the tech sector. You know, Trump might undo some of the government regulations that were put on AI, and when you look at the inauguration for example, look who was in back of him, three of the MAG seven heads of the companies, Apple, Google, and Meta.
For those that want to trade the MAG7 2x bull, we have an equal weight MAG 7 index 2x bull, QQQ, and a non-leverage inverse bear if you want to trade the short side, QQ QD. In addition to that, a couple other areas to maybe note, biotech and healthcare. Some say this administration might be more pro business, maybe more M&A activity when it comes to biotech and the flip side, the naysayers, some that might be a short term if Kennedy becomes the health secretary, what the impact on vaccines and big Pharma could be. So we have a number of ways you can trade that, a 3X bull, Appley, the symbol cure, and then for biotech, a lot of people are familiar with short-term trading on our S&P biotech index triple leverage bull and bear lab U lab D as well.
The financial is another area you could talk about, deregulation, how that's going to impact the big banks. We have the triple average bull and bear on the financial select sector index along with triple leverage bill on the regional banks. So a lot of exciting ways you could trade the different sectors regardless of your opinion on a short-term basis.
Artificial intelligence, also known as AI, is projected to experience significant growth in the coming years. By 2030, the global AI market size is projected to surpass $2.5 trillion dollars. So what are some ways ETF investors and traders can participate in this AI boom? You always want to look at the companies that can capitalize on the AI craze through revenue growth. So maybe the best way to play it from a short-term trading perspective would be a basket of stocks that give you exposure to AI.
We track the selective AI and US Big Data index. We have a 2X bull and bear, Appley, symbol AIBU for the bull, AIBD for the bear. Just today, Trump announced more AI infrastructure investments in the US, so you may want to look at some single stock names that are prominent in the AI space, whether that's Paler, Nvidia, Broadcom, Taiwan SE semiconductor. These are all leverage and inverse single stocks. We'll talk about that in a minute that you could trade on an individual basis whether bull or bear.
One of the things I'll mention about Paler here for example, which has been in the news a lot, it's coming off a 300% plush year last year, lofty valuations at this point though for those of you who look at multiples trading right around, I think, 200, so high expectations. Some people on a short-term basis may look at a bear on Paler. We have an inverse 1X bear for those that think the momentum continue on a short-term basis. We have a 2X bull on Paler, PLTU.
And you just mentioned this ad leveraged and inverse single stock ETFs. They're booming and Direxion recently expanded its suite of single stock ETFs with four more pairs this time linked to Berkshire Hathaway and Palante tier Technologies as you mentioned. Can you tell us more about that? Yeah, sure. I mean when we look for these leverage inverse single stock ETFs, it's a franchise that's been around for a couple of years. We feel we're the leader in the leverage and inverse ETF space.
We've been doing this since 2008. As you mentioned, we have 13 pairs with over six billion in assets to it. Palanteer and Berkshire are just the latest two examples of looking for leverage and inverse single stocks that are widely traded and have a lot of headlines associated with it, so traders could trade off of that. In the case of Berkshire, people think that that consistent return can continue, want to leverage the bull side on a short-term basis, but also you have some naysayers that Berkshire, the change in management, who knows what's going to happen in the long term. Some people might want to hedge their gains in Berkshire as a result of that. We have an inverse bear that you can play on that as well.
Got it. Now switching gears a bit, the US Federal Reserve keeping interest rates too high for too long is a potential risk that some economists have noted. So how is this impacting treasury ETFs and what trends in the bond market are you observing? Well, it's interesting. Inflation's still persistent, job market is still resilient. You don't know what the new administration's going to bring in terms of tariffs and the potential impact that it have on inflation.
The last Fed minutes touched on that. The Fed is signaling maybe less rate cuts this year than they anticipated. Bonds this year when you look at TLT for example are down a little bit in terms of rates rising. You know, the Fed may not decide to cut rates this year, some are predicting only two rate cuts down from four. The Fed's always going to be data dependent. So last week for example, some of the inflation news on the CPI and PPI were a little more muted.
Regardless, we've seen some real active trading in our 3x bull 20 plus year treasury, so 3x bull on the TLT looking for rates to go down. We continue to see that translate with our TMF. We also have the flip side, the triple leverage inverse bear if you think rates are going up, TMV. And then the 7 to 10e Treasury, you know the 10e got to 480, it's dropping back down now for those that want to play the bull and bear 3x bull and bear on the 7 to 10 year off Ife. We have options for them as well.
And add one last thing before you take off with gold rallying and continuing to trade near all-time highs. How are some ETF traders taking advantage of the price action within gold mining stocks? Well, there is a differentiation between gold mining stocks and the physical commodity itself. Gold mining stocks tend to have a higher beta associated with it than the physical gold itself. Just to give you an example sometimes of the divergence in performance, 2024 was a much stronger year for the physical commodity gold than gold mining stocks or junior gold miners.
This year at least in January the reverse has taking place. Gold, the physical commodity is up only half of what the mining stocks are. So for those that want to trade gold mining stocks on a short-term basis, we have a 2X bull and bear both on the gold miners and junior gold miners based off of the GDX gdxj those benchmarks that those two non-leverage ETFs track. Gold will be interesting this year. There's a lot of geopolitical risk, a lot of global conflicts.
Will that translate also into some upside movement in gold miners if the physical gold ends higher as well? We'll see, but you know, gold mining stocks, a lot of traders, active traders out there like the trade because of the extreme volatility has both to the up and downside.
Ed, as always, thank you so much for your timely insights and we will definitely see you soon. Thanks for having me. Yes, definitely look forward to it and be sure to visit direxion.com to learn more about Direxion's ETF lineup, news, updates, and education for traders. I'm Thalia Hayden. Thanks so much for watching and we'll see you next time.
