A 'Magnificent' Rally Raises Both Intrigue And Questions For Direxion's QQQU, QQQD ETFs

Core Insights - The total market capitalization of the Magnificent Seven tech companies surpassed $22.2 trillion, with Nvidia Corp. reaching a valuation of over $5 trillion, exceeding Japan's entire economy [1][3] - Nvidia's CEO announced $500 billion in AI datacenter orders for 2026 and plans to build seven AI supercomputers for the U.S. Department of Energy [2] - Concerns have been raised about a potential bubble in generative AI, despite some experts believing in its transformative potential [4][5] Nvidia Performance - Nvidia experienced a strong quarter but saw its stock fall 4% in the past month due to concerns over tech valuations and upcoming monetary policy decisions, dropping below the $5 trillion mark [6] Direxion ETFs - Direxion offers two ETFs for the Magnificent Seven: the Bull 2X Shares (QQQU) for optimistic investors and the Bear 1X Shares (QQQD) for pessimistic investors [7][8] - The QQQU ETF has gained nearly 20% since January, but technical momentum is weak, with price action slipping below key moving averages [11] - The QQQD ETF has dropped over 18% since the start of the year but is up almost 4% in the trailing month, with positive sentiment amid questions about tech sector sustainability [13]