Direxion Daily Financial Bear 3X Shares
) - This exchange-traded fund (ETF) seeks daily investment
results, before fees and expenses, of 300% of the inverse of the
Russell 1000 Financial Services Index. The fund normally creates
short positions by investing at least 80% of net assets in
financial instruments that, in combination, provide leveraged and
unleveraged exposure to the index.
I know that I'll get some e-mails on this recommendation,
saying, "What happened to the long
Direxion Daily Financial Bull 3X Shares
Trade of the Day
on Jan. 4?"
Well, our target for FAS was $32, and the ETF made it to
$31.60 on Jan. 13. Please keep in mind that the Trade of the Day
does not manage fee-based investment programs, nor do I send
e-mails when goals are met or I think liquidations should be
made. Therefore, you must aggressively monitor and manage your
As for FAZ, a pop above the 20-day moving average, now at just
above $9, would signal a run to the 50-day moving average at
$10.35. Traders should exercise patience and try to buy FAZ under
$8.60. It is not wise to chase inverse funds - let them come to
Leveraged ETFs seek to deliver multiples of the performance of
a benchmark, while inverse ETFs seek to deliver the opposite of
the performance of a benchmark. These ETFs entail unique risks,
including, but not limited to: the use of leverage, aggressive
and complex investment techniques, and the use of derivatives.
Returns over longer periods will likely differ in amount and even
direction of the underlying.
These products are not suitable for all investors. They
require active monitoring and management. Stop-loss orders should
be used to protect against losses.
If you have questions or comments for Sam Collins, please
e-mail him at