It was just a few weeks ago that investors were put on red
alert that a rough September was in the offing.
That has not been the case this month as September's
reputation for being a dreadful month for the bulls is nearly out
the window, particularly after last week saw U.S. stocks notch
their best weekly performance since January.
Three Bearish Leveraged ETFs For September
The S&P 500 climbed 1.5 percent while Dow Jones Industrial
surged 2.5 percent on news
), Bank of America (NYSE:
) and Hewlett-Packard (NYSE:
) will be replaced in the index by Goldman Sachs (NYSE:
), Nike (NYSE:
) and Visa (NYSE:
More importantly, there is a Federal Reserve meeting this week
and this is the big one. The one where the central bank could and
probably should announce some form of tapering to its
quantitative easing efforts. That will be the issue on traders'
minds until clarity is delivered when the meeting concludes
Direxion Daily Gold Miners Bear 3X Shares (NYSE:
) Clearly, this is a trade for the adventurous because DUST is a
volatile, triple-leveraged ETF. With a tapering announcement
looming, bearish positions on precious metals make sense. The
wind has come out of the recent rally in gold and silver ETFs and
the miners are again being taken to task.
Despite an impressive August rally, the Market Vectors Gold
Miners ETF (NYSE:
) could not break through the $31-$32 area and make a run to
reclaiming its 200-day moving average. That is one failure an the
other is that GDX, which lost 8.5 percent just last week, have
given back nearly
all of its August gains
. Bad news for those bullish on miners, but great news for
PowerShares NASDAQ Internet Portfolio (NASDAQ:
) Internet ETFs were in focus last week on news
of the Twitter IPO
, but there is a more important story to be heard with PNQI and
And yes, the story involves more than just the resurgence of
). Internet ETFs, including PNQI, have been
touching new all-time highs on a regular
. The even better news is that these funds' fortunes are not
intimately correlated to tapering, regardless of what the Fed
In fact, Internet stocks and the ETFs that house them have
proven relatively immune to rising interest rates, increasing the
allure of this sub-sector in a post-tapering world.
iShares MSCI China ETF (NYSE:
) Scores of U.S.-focused ETFs have legacies , but there is an
interesting seasonal trend with China ETFs that has not gotten
much attention. Over the last three years, select China ETFs have
started rallies in mid- to late September that have lasted
anywhere from into November, into year-end or into the following
That is something to keep an eye on as emerging markets
equities continue to perk up and investors embrace compelling
valuations on Chinese shares.
For more on ETFs, click .
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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