Traders crowding a leveraged ETF for a bullish Nasdaq-100 bet just got burned. That is the leverage tax in a choppy tape: direction can be right and the path still kills you. Watch the de-risking flow

What happened: Traders who rushed into a leveraged ETF to make a bullish bet on the Nasdaq-100 got burned, according to MarketWatch, after some investors appeared too eager to buy the dip in technology stocks last month. Why it matters: The report points to losses for traders who used the leveraged fund to bet on a Nasdaq-100 rebound during a technology stock pullback.

Traders who rushed into a leveraged ETF to make a bullish bet on the Nasdaq-100 got burned, according to MarketWatch, after some investors appeared too eager to buy the dip in technology stocks last month.

The report points to losses for traders who used the leveraged fund to bet on a Nasdaq-100 rebound during a technology stock pullback.