3X Tech Bear ETF a Buy

By Sam Collins,

Shutterstock photo

Direxion Daily Technology Bear 3X Shares (NYSE: TYP ) - This highly leveraged exchange-traded fund (ETF) attempts to mirror three times the inverse of the daily results of the Russell 1000 Technology Index.

Yesterday, TYP closed above its 20-day moving average (green line) after a 15-day consolidation supported by the 50-day moving average (blue line).

This ETF is a day trading vehicle, but could possibly be held for a week or more in a sharply declining market. The target for this trade is $27.

Trade of the Day - Direxion Daily Technology Bear 3X Shares (NYSE: TYP)

Trade of the Day Chart Key

Leveraged and inverse ETFs entail unique risks, including but not limited to the use of leverage, aggressive and complex investment techniques, and use of derivatives. Returns over longer periods will likely differ in amount and even direction.

These products require active, daily monitoring and management. They are not suitable for all investors. Stop-loss orders should be used to protect against losses.

The Trade of the Day is not a fee-based managed portfolio, so buyers using illustrated charts must monitor their own buying and selling prices.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Investing Ideas , Stocks
Referenced Stocks: ETF , TYP

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Sam Collins

Sam Collins

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