Monday's list of the largest percentage losers among U.S. stocks underscores ongoing weakness in once high-flying growth and momentum names, many hailing from the technology sector.
Semiconductor maker NVIDIA Corp. (NASDAQ: NVDA) plunged 12 percent, Square Inc. (NYSE: SQ) tumbled nearly 11 percent and the group of stocks losing 6 percent or more yesterday was littered with technology fare.
The ongoing tech wreck is boosting the fortunes of the Direxion Daily Technology Bear 3X Shares (NYSE: TECS). TECS is designed to deliver triple the daily inverse performance of the Technology Select Sector Index.
Entering Monday, TECS sported a month-to-date gain of just 2.7 percent, making it the fourth-best bearish ETF in the Direxion stable this month. That changed in a hurry Monday. After posting an 11.53 percent gain on volume that was nearly double the daily average, TECS is up more than 14 percent this month.
Why It's Important
At their lows of the day Monday, the FAANG stocks were between 20.3 percent and 39.5 percent below their 52-week lows. While Facebook Inc. (NASDAQ: FB) and Alphabet Inc. (NASDAQ: GOOG) now reside in the communication services sector, Apple Inc. (NASDAQ: AAPL) remains a tech stock and the largest component in the index TECS looks to deliver triple the inverse exposure of.
Apple and Microsoft Corp. (NASDAQ: MSFT), which fell 3.39 percent yesterday, combine for over 37 percent of the Technology Select Index. Potentially setting the stage for more near-term upside in TECS is the technology sector's inability to shake out of a slump that is more than a month old.
TECS has seen fourth-quarter outflows of $3.53 million, but if the FAANG quintet continues scuffling, those outflows could turn to inflows. Direxion data indicate some bearish technology ETFs have been adding new money in recent weeks.
Time For This Retail ETF
Another China Internet ETF Debuts
See more from Benzinga
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.