Get Out of This ETF NOW!

By Sam Collins,

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Direxion Daily Large Cap Bull 3X Shares (NYSE: BGU ) - This exchange-traded fund (ETF) seeks investment results equal to 300% of the daily performance of the Russell 1000 Index. Since it tracks large-cap stocks, it has matched the pattern of other indices like the S&P 500 and the Dow 30.

On Aug. 26, I said , "Yesterday [Aug. 25], it performed a key reversal, much like the indices. Also like them, it triggered a buy signal from our proprietary Collins-Bollinger Reversal (CBR) indicator.

"Initially, look for BGU to close the gap between $42.22 and $43.07. Then it could jump to the 50-day moving average at $45.75, and even to $50."

BGU has achieved all targets, and with the major indices at resistance , it is time for traders to cash in their profits - NOW!

This leveraged ETF is a very volatile and speculative vehicle that is only appropriate for those willing to be disciplined traders. It is not suitable for investors. Check with your broker regarding stop-loss policies and margin requirements, which are usually 100%.

BGU Chart

Chart Key

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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 Stocks
Referenced Stocks: BGU , CBR , ETF

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