Bank On This High-Risk Financial ETF

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Direxion Daily Financial Bull 3X Shares (NYSE: FAS ) - This highly leveraged exchange-traded fund (ETF) seeks daily investment results of three times the price performance of the Russell 1000 Financial Services Index.

After the April high at close to $40, FAS plunged to below its bullish support line before reversing from a double-bottom under $18 in late August. Since then, a bull channel developed with current support below $24. Yesterday's breakaway gap blew through the top of the channel and provides an opportunity to trade FAS to $32. But gaps of this nature (i.e., continuation gaps) are often closed, so traders should protect the position with a stop-loss order just under $27.

The SEC warns that returns of leveraged ETFs will likely differ in amount and even direction over longer periods of time. So these products require active monitoring and management, as frequently as daily. They are not suitable for long-term investors.

Trade of the Day - FAS Stock Chart

Trade of the Day Chart Key

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 The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ETF , FAS

Sam Collins

Sam Collins

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