Stock performance with laptop and calculator
Markets

A Risky Bet on the Financials Could Pay Big

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

Since the April high at close to $40, FAS has plunged to its bullish support line at $20. But a reversal last week, which was duplicated on Tuesday, signals that the index could quickly jump to its 200-day moving average at $27.

The SEC warns that returns on leveraged ETFs over longer periods will likely differ in amount and even direction of the underlying, so these products require active monitoring and management, and are not suitable for long-term investors.

FAS Stock Chart

Chart Key

How to Double Your Money Every Week in 2010

Are you doubling your money with every trade you make? You should be! This 2010 trading guide will show you how, and it also details two money-doubling options trades to get you started. Download your FREE copy here.

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


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

Other Topics

Stocks