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Direxion Daily Energy Bull 2X Shares (ERX)

NYSEArca - NYSEArca Delayed Price. Currency in USD
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44.44-7.05 (-13.69%)
At close: 04:00PM EDT
44.86 +0.42 (+0.95%)
After hours: 07:58PM EDT
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  • B
    Berkhahn
    They had some interesting insights about ERX on (http://dailygainalerts.tech). Definitely made me think twice about the company.
  • g
    gary
    Shaking too much
  • B
    Benjo
    Keep loading to $120 !!
    Bullish
  • N
    Nickachu
    Both Gas & Oil increasing check the pumps! Tightening supply, Rusdia out, China demands more, & summer useage has out striped supply! Yes Energy Oil companies are recording record earning and there a reason! think economics! no supply period!
    Bullish
  • g
    gary
    ERX is up 6%
  • g
    gary
    ERX is down 5% again !!!!
  • s
    sharon
    the President continues to push Green Energy via his new spending bill to bring down inflation (lol) AND one of the reasons oil will continue to move higher and at the very least stay at elevated prices.....OPEC is helping as well as they continue to allow tight markets......OPEC says they have little to no spare capacity THEN you have Putin to confirm all of the above meaning tight markets.....for me its buy the dips!!
  • s
    sharon
    back in the ERX @ 45 and Apache @ 32 as i think oil remains at elevated levels throughout the summer.....
  • R
    Ryan
    ERX, CHAU and LOIL for the next 6-8 months, you're welcome. Oh yeah and try to pick up some quality tech names on the cheap, they are selling off and will continue to once rates ultimately increase. Maybe, just maybe (assuming you like the odd risk, pick up RIOT/MARA on any larger dips. I still see another 25%/30% drop but LT bitcoin will rise again way above 50k

    EM/China and Energy= how to play 2021

    Stock up on quality tech names on the cheap.

    I should be charging for this advice ...
  • J
    Jim
    28 should do it
  • A
    Asuna
    upcoming earnings reports for xom and chevron will bring this up with the recent rise in oil. gotta be patient. it doesn't follow the price of oil, it follows the stocks.
    Bullish
  • R
    Robert
    how does one play this long term with 100 grand?
  • M
    Michael
    How was this 170 a share when oil was 70.00 last year?

    Oil is 50 and its 17.00

    I guess it has something to do with the rev split awhile back.

    So oil at 70.00 would be maybe 25?
    Bullish
  • E
    Ed
    Biden will never impose price limits on oil, regardless of Americans suffering at the pump. I'm sure Musk and the EV producers love it when gas is at $6.00 a gallon and oil at 500 a barrel. Ukrain may the catalist speeding up world wide dependency on oil, and a cleaner enviornment. Not what Putin wanted. but an inevitable unforseen consequence.
  • B
    Bill Qian
    If pandemic will be over and life turn back to normal in later 2021, can ERX rise to 50+?
  • s
    sharon
    as luck would have it the ERX is my best performer over the past months (in @22).......i regret not having more shares and hope you all loaded up when the stock price was much cheaper......i never try to predict where oil prices are headed but do pay attention to the supply and demand equation AND i do think demand will outstrip supply going forward......i will let the market pundits predict how high we go!! glta,,
  • M
    Mark
    bought 6200 shares. Oils are SEVERELY undervalued.
  • M
    Mr T
    To infinity and beyond. Actually was hoping for a nice pull back so I could load up more before we travel towards a 300% to 600% two year return (December 2022). would already be halfway there if I bought more shares near Halloween. instead I was nibbling not taking shark size bites.
  • j
    jim
    $TSLA conversation
    JP Morgan Quant Expert predicts Secular Bull Market in oil companies driven by algorithm initiated short squeeze in March 2021

    JPM quant trading and valuation experts Marko Kolanovic predicts the next 12 years will be the most profitable era for oil investors in the past 100 years due to inflation, the weakening US Dollar (caused by stimulus), a booming stimulus-driven recovery, and under-investment in oil production caused by environmental concerns.

    The fundamentals will be compounded by automatic trading by algorithm driven super-fast traders called Quants.

    The market will begin automatically rebalancing out of short positions in mid-March due to the recent rise in energy company stocks, oil prices and excess liquidity.

    The best picks to cash in on this cycle are $OXY, $XOM, $CVX, $ET, $ERX & $XLE.

    The following is an excerpt from his article.

    Quants and Momentum Investing

    In a market where algos and trend-followers have emerged as one of the dominant price-setting forces, it is hardly a surprise that the JPM quant focuses on their influence as the driver behind a commodity supercycle. Indeed, he writes that after "CTAs played significant role in the 2014 oil price downturn" more recently, "CTA funds have been adding Energy exposure. The reason is that 12-month momentum turned positive on Oil, and going forward signals will remain solidly positive."

    And since vol-control funds are some of the dumbest money around and their actions can be anticipated well in advance, JPM notes that "a further decline in volatility will likely result in larger and more stable cross-asset quant allocations. A larger momentum impact may affect Energy equities, which is the only sector that still has a strongly negative momentum signal and is hence heavily shorted in the context of factor investing."

    That, JPMorgan believes, will "change in mid-March, when the momentum signal for energy equities turns positive" which may be a hint to the redditors out there: if you want to squeeze the systematic shorts, do it where it hurts and buy some energy stocks to crush the CTAs. You have about a month to do so because JPM's model momentum factor "will need to rebalance in March by closing ~20% of its allocation to Energy equity shorts, and adding ~2% to energy longs, for a ~22% net buying in Energy."

    What is the quantitative significance of these flows? Kolanovic calculates that if one roughly assumes that there is about ~$1Tr in equity long-short quant funds and that half of these funds are not sector neutralized, "the flows could be quite significant, roughly $20-$30bn." As shown in the chart below, the ratio of energy shares shorted vs all other S&P 500 shares shorted, closely followed the commodity supercycle.

    Remarkably, most recently the number of shares shorted for energy was 4 times the S&P 500 average (note that given the decline of the sector’s weight, energy share prices declined, and the effective $ amount shorted was only 2 times larger). In other words, one doesn't even need to squeeze the shorts: come March - absent some major new crisis - as a result of broader market technicals the prevailing shorts will close them out on their own and go long.

    Another "flow factor" behind the "supercycle" is rotation by discretionary funds and retail: In the period from 2010 to 2015, the Energy sector had a 10.6% allocation in conventional equity portfolios. Since then, this has declined to a 3.1% weight currently (Figure 4). The largest decline was in active allocations, which declined from 7% to 1.5% (while passive allocations decreased from 3.6% to 1.8%), which is understandable - investors dumped "dead stocks" to chase growth and momentum, but the tide is now turning, and "any retracement of this decline, on a US equity fund asset base of ~$14T would result in significant inflows and re-pricing."

    According to Kolanovic, as economies reopen, inflation moves higher, and yield curves steepen, active funds are expected to first close cyclical shorts, and then rotate from long secular growth towards value and cyclicals. His next point is critical: given that equity assets significantly increased over the last 10 years, and the energy sector significantly decreased, even a small rotation could produce an outsized move.
    JPM has a hot tip for investors: the biggest systematic shorts are in the energy sector.
    JPM has a hot tip for investors: the biggest systematic shorts are in the energy sector.
    www.zerohedge.com
  • n
    naren
    it was actually 1 for 10 split. one year high was 18.5 which became 185 after split. easily could be 300 in next 2 years. please see the chart on yahoo finance. its all time high is 1250.
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