Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ) Up 3.6% Last Week

Posted by: : Pushpa NareshPosted on: March 18, 2014 Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ) Up 3.6% Last Week

Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ) has posted 3.63 percent gains in the past one week of trading even as the S&P 500 index saw its valuations dip by nearly 1.02 percent in the same time span. The above dip stick check is a clear indicator of the potential of this leveraged equities exchange traded fund has in helping investors guard against the uncertainties in the stock market which is being dictated by the bulls.

Pegged To The Russell 1000 Financial Services Index           

The $407 million market capped Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ) tracks its investments against the returns which are posted by the Russell 1000 Financial Services Index (-300%). Its Top three holdings include investments in the Russ 1000 Index swaps funds which range account for 120 percent, 58 percent and 45 percent respectively.

Laggard In Recent Past

In the past year, the fund which gains in market value, when the S&P 500 index performs negatively, has in the past year posted a 51 percent negative return on its investments to its share holders. This is in line with the new 52 week high price points that the S&P 500 index has posted in the recent past.

Huge Potential

But the likelihood of an impending deceleration in the stock market over the near team is gathering steam. The ongoing diplomatic standoff between Russia and E.U could still blow up into a full fledged armed conflict of global scale if the key players do not step back from confrontation. The other potential market uncertainty is the additional Fed tapering that could be announced in the next few weeks. Even as the larger investor community is banking on taking full advantage of a likely bull run at the stock market, as and when the fed tapering buoys the market, a larger possibility exists that the markets might react negatively and it is in such a situation that holding on to ETF like Direxion Daily Financial Bear 3X Shares (NYSEARCA:FAZ) makes sense.

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Pushpa Naresh

Equities Research at HEFFX
Pushpa Naresh has done an MBA (Finance) and an avid market tracker. She closely tracks US markets along with other global markets like India. She has been expressing her views about markets.
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