54.35 +0.20 (0.37%)
After hours: 7:59PM EDT
|Bid||0.00 x 1300|
|Ask||0.00 x 800|
|Day's Range||52.99 - 54.36|
|52 Week Range||27.27 - 55.95|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||3.01|
|Expense Ratio (net)||1.02%|
With the capital markets looking for a looming rate cut to boost U.S. equities sometime in 2019, a short-term play could be the forthcoming volatility ahead as Federal Reserve Chairman Jerome Powell testifies before congress this week to apprise lawmakers on the strength of the U.S. economy. As such, traders can take advantage of S&P 500 leveraged exchange-traded funds (ETFs) for short-term gains. Potential leveraged ETF plays in the Direxion Daily S&P500 Bull 3X ETF (SPXL) and the Direxion Daily S&P 500 Bear 3X ETF (SPXS) could have traders placing these ETFs on their watch lists.
With the majority of capital markets looking for a looming rate cut to boost U.S. equities sometime in 2019, it might not be as necessary for a rally as most might think, according to PNC Financial co-chief investment strategist Jeffrey Mills. If the bulls are wrong, of course, it also gives inverse ETF investors a chance to reap gains. SPXL seeks daily investment results of 300% of the daily performance of the S&P 500 Index.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Investor fears of an inverted yield curve have been sending the markets on a volatile ride the past week, but on Friday, those fears eased as the Dow Jones Industrial Average proceeded to gain over 100 points in the early trading session. Fears of a global economic slowdown was compounded by market noise of an inverted yield curve blaring from the bond community. The inversion came after the central bank decided to keep interest rates unchanged last week.
Trading E-mini S&P 500 futures represents a $200 billion market, and some traders are noticing a lack of liquidity, which could put the stock market in a fragile state should a sharp downturn take place. It's something that traders who play in this nuanced market have been picking up on since last year's fourth-quarter volatility that racked the markets and led to massive sell-offs culminating on Christmas Eve. Futures activity tracking the S&P 500 index is typically impacted prior to hitting the stock market.
Despite the Dow Jones Industrial Average looking at its fifth straight losing session last Friday, it’s easy to forget that the bull run in the stock market turned 10 years of age last weekend. The Dow fell 5.6 percent, while the S&P 500 was down 6.2 percent and the Nasdaq Composite declined 4 percent. 2018 marked the worst year for stocks since 2008 and only the second year the Dow and S&P 500 fell in the past decade.
Among the many curveballs the global economy has thrown at investors this year, one of the least expected might be the traction emerging markets have seen in the opening months of the year. Take a look at the year-to-date chart for the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: EDC) against that of the broad market U.S. equity represented by the Direxion Daily S&P 500 Bull 3X Shares (NYSE: SPXL). Past performance is not indicative of future results.
The U.S. bull market will turn 10 with more room to run. The S&P 500 Index has quadrupled, rallying more than 300%, from the bear-market bottom hit on Mar 9, 2009.
Amid Monday's sell-off, the S&P 500 fellow below 2,800, which could signal the index has hit a key resistance level. Potential leveraged ETF plays in the Direxion Daily S&P500 Bull 3X ETF (SPXL) and the Direxion Daily S&P 500 Bear 3X ETF (SPXS) could have traders placing these ETFs on their watch lists. The S&P 500 opened the session at 2814.37, but closed the session at 2,792.81--down 0.77 percent on the day.
The S&P 500 has rallied 19% from the December low, and is now 5% away from its all-time high. Investors can tap this opportunity by going long on the index with the help of ETFs.
U.S. equities are off to a stellar beginning to 2019 and the volatility that reared its ugly head near the end of 2018 has been missing. It's certainly something investors want to mute since the Dow Jones Industrial Average is up almost 11 percent while the S&P 500 is 10.89 percent higher and the Nasdaq Composite is up 12.83 percent year-to-date. Just recently, the S&P 500 reached a key bullish technical level, moving past its 200-day moving average for the first time since December 3.
Last week, the S&P 500 reached a key bullish technical level, moving past its 200-day moving average for the first time since December 3. The S&P 500 was down 6.2 percent to end 2018, but it has since recovered after U.S. equities were roiled by volatility to close the year. To some technical analysts, breaking through that 200-day moving average paves the way for bigger gains ahead.
This week, the S&P 500 reached a key bullish technical level, which could pave the way for gains in the Direxion Daily S&P500 Bull 3X ETF (SPXL) . SPXL rose 2 percent on Friday behind investor optimism that a trade deal with China could get done sooner than later as the S&P 500 gained 0.79 percent. Last week, the S&P 500 slid past its 200-day moving average for the first time since December 3.
Optimism is prevailing around U.S.-Sino trade, oil price and U.S. government shutdown. This should boost the following leveraged ETFs.
The S&P 500 is the benchmark U.S. equity gauges and one of the world's most widely used stock indexes. Around the world, trillions of dollars are benchmarked to the S&P 500.Here in the U.S., many of the largest index funds and exchange-traded funds (ETFs) are S&P 500 tracking funds. In the U.S., the world's largest ETF market, just four ETFs have over $100 billion in assets under management. Three of those funds are S&P 500 ETFs -- the SPDR S&P 500 ETF (NYSEARCA:SPY), the iShares Core S&P 500 ETF (NYSEARCA:IVV) and the Vanguard S&P 500 ETF (NYSEARCA:VOO).The S&P 500 and related funds are alluring for investors because these products are typically cheap, efficient and accurately reflective of the U.S. equity market. For investors willing to take on more risk in search of potentially higher returns, several leveraged ETFs offer exposure to the S&P 500, too.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Next 10 Months For risk-takers, here are some of the best leveraged ETFs tracking the S&P 500. Direxion Daily S&P 500 Bull 3X Shares (SPXL)Expense Ratio: 1.04%, or $104 annually per $10,000 investedThe Direxion Daily S&P 500 Bull 3X Shares (NYSEARCA:SPXL) is designed to deliver triple the daily returns of the S&P 500. So if the S&P 500 rises by 1% today, this leveraged ETF should rise by 3%. The operative word in the first sentence is "daily."Leveraged ETFs "seek daily goals and should not be expected to track the underlying index over periods longer than one day," according to Direxion.That is one point underscoring the risks of holding leveraged ETFs like SPXL for extended time frames. Another is the high fees associated with leveraged ETFs. There is little chance that, over the course of a year, SPXL will exactly mirror triple the performance of the S&P 500 and it is expensive for investors to learn that lesson as this leveraged ETF charges 1.04% per year.Think about that and then think about this: S&P 500 funds like IVV and VOO charge just 0.04% annually. ProShares Ultra S&P500 (SSO)Expense Ratio: 0.90%For traders that want to be involved with a leveraged ETF but want to decrease that juice, the ProShares Ultra S&P500 (NYSEARCA:SSO) is a fund to consider. Whereas the aforementioned SPXL looks to deliver triple the daily returns of the S&P 500, SSO attempts to deliver double the index's daily percentage performance.What that means is when the S&P 500 rises by 1% on a particular day, SSO should climb by 2%. While SSO offers reduced leveraged relative to a triple-leveraged ETF, it carries the same risks. * 10 Monster Growth Stocks to Buy for 2019 and Beyond "Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks," according to ProShares. ProShares UltraShort S&P500 (SDS)Expense Ratio: 0.90%Not all leveraged ETFs are bullish. Many are inverse and geared. The ProShares UltraShort S&P500 (NYSEARCA:SDS) is one of the largest such funds. Actually, SDS is one of the largest leveraged ETFs of any stripe.This is how this leveraged ETFs works. If the S&P 500 falls by 1% on a particular day, SDS should rise by 2%. Remember that this is a leveraged ETF and that the same risks that are relevant to bullish leveraged funds are applicable to SDS as well. Direxion Daily S&P 500 Bear 1X Shares (SPDN)Expense Ratio: 0.56%Not all inverse funds are leveraged ETFs. Some are just inverse, but inverse funds are often lumped in with leveraged ETFs, so the Direxion Daily S&P 500 Bear 1X Shares (NYSEARCA:SPDN) is worth highlighting here.SPDN is a good idea for the investor looking for downside protection without having to engage with a leveraged ETF. The Direxion fund's aim is similar: to deliver the same daily downside percentage of the S&P 500 when that index declines. As a non-leveraged ETF, SPDN can be held for long-time frames than leveraged equivalents and it is cheaper to do so as highlighted by SPDN's expense ratio. Over the near-term, SPDN is worth monitoring. * 7 Breakout Stocks In Early 2019 "Both the index and the bear fund are again approaching a cross at their 2018 starting prices," said Direxion in a recent note. "Bear in mind that CBOE's volatility index is still about where it was through October and November, 2018, which coincided with some of the market's biggest down days of the year. As in previous months with heightened volatility, it might not be entirely odd to see similar dramatic volatility in the months to come, as buyers and sellers fight it out as to whether to dig further out of the 2018 hole."As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post The 4 Best Leveraged ETFs to Buy appeared first on InvestorPlace.
According to the Congressional Budget Office, the 35-day federal government shutdown cost the economy $11 billion as a mix of lost output from federal workers, delayed government spending and reduced demand. The CBO estimated that an additional $8 billion, or 0.2 percent was lost during the first quarter of 2019. "Among those who experienced the largest and most direct negative effects are federal workers who faced delayed compensation and private-sector entities that lost business," the report said.
U.S. President Donald Trump announced Friday that a deal was reached with congressional leaders to reopen the government temporarily, ending a shutdown that was in its 35th day. At a White House press conference, Trump said he hopes to sign the latest measure that includes restarting government operations through Feb. 15. Trump previously pledged not to sign spending legislation unless it included a $5.7 billion proposal for a border wall.
In the meantime, Treasury yields rose, putting downward pressure on government bond prices on Friday. The Direxion Daily S&P500 Bull 3X ETF (SPXL) rose 10 percent on the strength of the Dow Jones Industrial Average gaining over 700 points, while the Direxion Daily 20+ Yr Trsy Bull 3X ETF (TMF) fell 3 percent. A flight to the safe-haven confines of Treasury debt has been a persistent trend the last few months, but the positive jobs growth data and Powell's comments provided the boost for stocks.
As the S&P 500 fell 1.58 percent, SPXS fed off the declines with a 4.81 percent gain on Thursday. The markets were set adrift in a sea of red following Wednesday's announcement by the Federal Reserve that it will raise interest rates by another 25 basis points. Federal Reserve Chair Jerome Powell sent dovish signals with the prospect of only two rate hikes rather than three, but the capital markets apparently didn't see enough doves.
S&P 500 bear traders are feeling optimistic about the pessimism retail investors are exhibiting, which makes a prime play for the Direxion Daily S&P 500 Bear 3X ETF (SPXS) . According to a survey by the American Association of Individual Investors, close to half feel the S&P 500 will be in negative territory in six months. The 48.9 percent who see the S&P 500 in the red in six months' time registers the highest reading since April 2013.
Market volatility is back. Here is what investors need to know about using inverse & leveraged ETFs to make money from wild swings.
Trade war fears seeped back into the markets as investor optimism surrounding the tariff war ceasefire between U.S. President Donald Trump and Chinese president Xi Jinping faded, causing the S&P 500 to dip below its 200-day moving average while the "death cross," a technical chart pattern term that could signal a major sell-off, looms. The Dow Jones Industrial Average fell over 700 points on Tuesday while the S&P 500 followed its lead, declining over 2%. As the S&P 500 crossed below its 200-day moving average, the 50-day moving average was in its sight, signaling a possible "death cross"--when a short-term moving average falls below the long-term moving average--a forecast that more pain could be ahead for U.S. equities.