NVTX’s Parabolic Week: After a 103% Surge and Sharp Reversal, What’s Next for the 2X NVTS ETF?

The Tradr 2X Long NVTS Daily ETF (NVTX) delivered a masterclass in volatility last week, rewarding high-risk traders with a staggering 103.6% gain from Monday’s close to Friday’s finish. This parabolic move, which saw the fund more than double in value, culminated in a new 52-week high before succumbing to a sharp 13.18% reversal in the final session. The week’s action underscores the intense speculative appetite for leveraged single-stock products and serves as a stark reminder of their inherent, double-edged-sword nature in a fast-moving market.

A Four-Day Explosive Rally

The week’s extraordinary performance began after NVTX closed at $67.79 on Monday, October 13. Tuesday trading ignited the rally, with the ETF gapping up to open at $103.41 and closing at $103.47—a single-day gain of 52.6%. This momentum carried through Wednesday, with the fund adding another 38% to close at $142.81. The speculative buying climaxed on Thursday, October 16, when NVTX printed its new 52-week high of $177.96, a level more than 245% above its low just three days prior. Even after pulling back, it closed at $158.95, locking in another strong gain. This four-day ascent highlights the powerful amplification that leveraged instruments can provide when directional bets are correct.

Volume Signals a Speculative Frenzy

Price action alone did not tell the full story; trading volumes confirmed the market’s intense focus on NVTX. On Tuesday, as the rally ignited, volume exploded to 628,216 shares, more than 430% of its 65-day average of 145,040. High volume persisted throughout the week, with Thursday’s peak seeing 421,112 shares trade hands. Even during Friday’s sharp pullback, volume remained highly elevated at 260,100 shares, or 179% of the average. This volume profile is not indicative of long-term institutional positioning but rather a classic speculative frenzy, likely driven by a combination of retail momentum traders, algorithmic strategies, and intense FOMO (Fear Of Missing Out).

The Leveraged Reality Check

Friday’s session served as a harsh reality check. After peaking a day earlier, NVTX gapped down at the open and experienced a brutal intraday range of over $32, from a low of $125.03 to a high of $157.04. The 13.18% drop to close the week at $138.00 erased a significant portion of Thursday’s gains in a single session. This price action is the explicit function of a 2X daily leveraged ETF. Such products are designed to deliver 200% of the daily performance of their underlying asset—in this case, Navitas Semiconductor (NVTS). While this magnifies gains, it equally magnifies losses and exposes traders to the significant risk of volatility decay, making them unsuitable for buy-and-hold strategies.

A Forward-Looking Perspective

Following last week’s dramatic rise and fall, NVTX sits at a critical technical juncture. The fund’s new 52-week high of $177.96 now stands as a formidable resistance level, representing the peak of the recent speculative fervor. On the downside, Friday’s low of $125.03 becomes the immediate line of support. Traders will be closely monitoring whether the fund can consolidate above this level, which might suggest a healthy pullback, or if a break below it signals that the momentum has been definitively broken, leading to a deeper correction. The direction of the underlying NVTS stock will, of course, be the ultimate catalyst.