Political uncertainty, Fed policy, and earnings reports. With these major catalysts in mind, here's a list of leveraged ETFs that traders should be focused on this week.
The first broad-based leveraged ETF traders should have on their radar is the Direxion Daily FTSE Europe Bull 3X Shares (NYSE: EURL).
EURL and other Europe ETFs are bound to receive increased attention following the results of the first round of France's national election held on Sunday. Centrist Emmanuel Marcon and far right candidate Marie Le Pen advanced to a May 7th run-off that will decide the next leader of France, the Eurozone's second-largest economy.
EURL looks to deliver triple the daily returns of the FTSE Developed Europe All Cap Index, an index that devotes over 14 percent of its weight to French stocks, making France the benchmark's fourth-largest geographic allocation.
In a similar vein, the Direxion Daily MSCI European Financials Bear 1X Shares (NYSE: EUFS) and the Direxion Daily MSCI European Financials Bull 2X Shares (NYSE: EUFL) should also be watched closely in the run up and aftermath of the French election. Both funds track the MSCI Europe Financials Index, which consists of Europe's largest banks.
Le Pen has advocated for a return to the Franc and a French exit from the European Union. A victory by her would likely throw the Europe's financials into chaos.
The Direxion Daily Silver Miners Index Bear 2X Shares (NYSE: DULL) was anything but dull last week. DULL jumped nearly 12 percent as Silver futures reached their lowest levels in a month, and volume in the double-leveraged inverse silver miners ETF was 120 percent above the trailing 20-day average for the five days ended April 20, according to Direxion data.
DULL seeks to deliver double the daily inverse returns of the Solactive Global Silver Miners Index.
In what could be a sign traders are expecting the Federal Reserve to remain dovish, the Direxion Daily MSCI Real Estate Bull 3X Shares (NYSE: DRN) is one of Direxion's best-performing leveraged bullish ETFs month-to-date, up 13.6 percent in April. DRN seeks to deliver triple the daily returns of the widely followed MSCI REIT Index.
Several big-name biotech companies step into the earnings confessional starting in the middle of the week, with Amgen, Inc. (NASDAQ: AMGN), Anthem Inc (NYSE: ANTM), and Celgene Corporation (NASDAQ: CELG) among the companies in play. That could bring opportunity with the Direxion Daily S&P Biotech Bull 3X Shares (NYSE: LABU) and the Direxion Daily S&P Biotech Bear 3X Shares (NYSE: LABD).
LABU attempts to deliver triple the daily returns of the S&P Biotechnology Select Industry Index while LABD tries to deliver triple the daily inverse returns of that benchmark.
As is the case with biotechnology, marquee technology companies are delivering earnings this week and there are enough reports to justify the Direxion Daily Technology Bull 3X Shares (NYSE: TECL) and the Direxion Daily Technology Bear 3X Shares (NYSE: TECS) being on traders' radar screens. Additionally, traders might want to monitor late-week goings on in TECL and TECS in advance of Apple Inc. (NASDAQ: AAPL) earnings on May 2nd.
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