Fundamental Analysis

Arachnibull emphasizes that behind every chart is a story. This section explores macroeconomic, sector-specific, and company-level fundamentals that ignite price moves.

Intermarket and Sector Correlation Mapping

Macro Confirmation Before Leveraging In

Index Trends (SPX, QQQ, SMH): Before entering leveraged semis (like SOXL), Arachnibull checks whether the broader indices and the unleveraged sector (e.g., SMH) are in confirmed uptrends. We never leap without the web fully tensioned.

Yield Curve & Fed Policy Impact: Leveraged tech ETFs move violently with expectations of rate cuts. When the yield curve steepens and macro expectations shift dovishly, that’s often the ignition phase for a months-long trend.

Sector Rotation Analysis: Use tools like Relative Rotation Graphs (RRGs) and ETF performance heatmaps to detect when capital is flooding back into tech, growth, or cyclicals. Leveraged ETFs amplify these shifts.

Breadth Indicators: Watch for expansion in new highs, up-volume, and % of stocks above key MAs in the Nasdaq or S&P. These signal risk-tolerant environments suitable for holding 3x positions across multiple weeks.

Arachnibull Tip: “Don’t just track the fly — track the swarm. When capital rotates, leveraged ETFs ride the tailwind hardest.”

Additional Insights

Macro Catalysts: Learn how rate cuts, economic data releases, and legislation (like tech funding bills) drive entire sectors.

Earnings and Growth Stories: Arachnibull breaks down how earnings beats, forward guidance, and new product cycles (e.g., AI chips) trigger parabolic moves in SOXL and similar names. .p>

Sector Strength Tracking: Tools for tracking where capital is rotating and what sectors show strong beta or IV expansion.

Narrative Triggers: Identify when a news story or policy could serve as the ignition point for a call option setup.

Arachnibull's Edge: A weekly blog where Arachnibull dissects the "narrative + setup" of his favorite high-upside positions.