Loading news...
Most investors think only of the upside that comes from leveraged ETFs, unaware of the very real dangers they're exposing themselves to.
Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ - Get Free Report)'s share price passed above its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $42.07 and traded as high as $50.76. Direxion Daily Financial Bear 3X Shares shares last traded at $49.86, with a volume
The Direxion Daily Financial Bear 3X Shares was a star during the global financial crisis. The ETF still has its limited uses, but don't expect 2008 levels of performance.
Many investors look at leveraged ETFs as a way to really magnify their returns. In reality, they usually do much more harm than good.
Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ - Get Free Report) passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $39.35 and traded as high as $40.23. Direxion Daily Financial Bear 3X Shares shares last traded at $40.17, with a volume of 1,012,535 shares. Direxion
The first month of 2026 is already in the books. Which sector walked away with the top spot when it came to total returns?
Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ - Get Free Report) was the target of a large increase in short interest during the month of December. As of December 31st, there was short interest totaling 318,241 shares, an increase of 100.8% from the December 15th total of 158,461 shares. Approximately 12.8% of the shares of
Big bank stocks have been on a tear, creating an opportunity for contrarians. Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ) offers a way to bet against the financial sector with triple leverage.
Understand the construction of financial instruments to ensure they align with your investment goals and avoid frustrating those goals by using the wrong instruments. Leveraged ETFs are designed for short-term trading, not long-term holding, due to daily resets and time value decay in derivatives. FAZ, a 3x leveraged bear ETF for the financial sector, should be used for daily trading or speculation, not as a buy-and-hold investment.
Leveraged inverse ETFs like FAZ can be used to gain from market declines, especially in the financial sector, but are not long-term investments. These ETFs should be held for no longer than a single trading day due to price decay and daily rebalancing risks. Timing trades using momentum indicators like RSI can help capture gains, but caution is advised to avoid overuse and potential losses.
These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
There was growing uneasiness on Wall Street last week, caused by disappointing corporate updates from major banks, reigniting concerns about persistent inflation and the likelihood of sustained elevated interest rates.
Moody's rating downgrade has shed light on the intricate challenges facing U.S. banks, both large and small.
Warren Buffett has divested from multiple banks after identifying concerning issues in their financial practices.
The economy is already having to contend with inflation when it comes to stifling growth, but the current banking system could bring additional strife. The International Monetary Fund (IMF) is worried the recent bank rescues could create a perfect storm that could hamper economic growth.
Two new Breakout Stocks for Week 13 with better than 10% short-term upside and a Dow 30 Pick. Average cumulative returns for 2023 are +47.4% YTD. The Momentum Gauges® continue negative in bear funds from Mar 7th led by BNKD +62.4%. Last week peak gains were RIOT +31.0%, SVM +15.9%, NVDA +6.3%.
The collapse of SVB Financial Group has been dumping a large bucket of volatility in bank stocks, opening up trade opportunities in leveraged exchange-traded funds (ETFs) from Direxion Investments.
Two new Breakout Stocks for Week 12 with better than 10% short-term upside with ETFs and a Dow 30 Pick. Average cumulative returns for 2023 are +37.3% YTD. The Momentum Gauges® continue negative in bear funds from Mar 7th led by BNKD +65.7%. EGO peaked at +8.3% gains for members.
Given the half-million outflow and deteriorating fundamentals, the appeal for financial ETFs, especially banks, has dulled. As a result, investors bearish on the sector right now may want to consider a near-term short.
The biggest bank failure since the financial crisis reverberated across the industry.