ETF ALPHA - weekly ETF trades

Welcome to this weeks ETF ALPHA segment. It would be an understatement to call last week’s ending nothing short of a blood bath. However, we still provided our readers with  notables such as UGAZ (+20%) and TMF (+5%).

We will layout the potential trades for you, and it is up to you to decide which trades you like to take. If you are asking yourself, “what is an ETF?”, or would like some more information regarding the benefits of trading ETFs, please read our post here.

 

Direxion Daily MSCI Brazil Bull 3X ETF (BRZU)

We recommended to our readers to buy BRZU above $27. it seems that it failed to breakout of the $27 and is headed down to $18 – most likely $11.50. BRZU needs to hold $18 support, if not you can expect it to continue to slide to $11.50. If you are entering this trade at $18 or $11.50 keep a very tight stop loss in place.

Buy range: above $18 or $11.50

Targets: $18 – $27

Stop Loss: below $18 or $11.50

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the MSCI Brazil 25/50 Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is designed to measure the performance of the large- and mid-capitalization segments of the Brazilian equity market, covering approximately 85% of the free float-adjusted market capitalization of Brazilian issuers. It is non-diversified.

 

Direxion Daily MSCI Real Est Bull 3X ETF (DRN)

It looks as though there might be a double top here. DRN looks to have failed to breakout of the $23 resistance and is headed back to the $20.75 support. A double top is generally considered bearish, thus we recommend to our readers to wait to see if DRN can hold that support prior to jumping in.

Buy range: $23

Targets: $25

Stop Loss: below $23

Fund Summary
The investment seeks daily investment results of 300% of the daily performance of the MSCI US REIT IndexSM. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a free float-adjusted market capitalization weighted index that is comprised of REITs that are included in the MSCI US Investable Market 2500 Index. It is non-diversified.

 

Direxion Daily MSCI Em Mkts Bull 3X ETF (EDC)

Emerging markets have taken a beating and this beating continues. For a moment it seemed as though EDC may have broken out of the $95 resistance and headed back to $85. EDC may be headed lower therefore, be patient with this one.

Buy range: above $85

Targets: $110

Stop Loss: below $95

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the MSCI Emerging Markets IndexSM. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a free float-adjusted market capitalization weighted index that is designed to represent the performance of large- and mid-capitalizations securities across the 24 emerging market countries. The fund is non-diversified.

 

Direxion Daily Energy Bull 3X ETF (ERX)

ERX looks to continue to go lower to the $33.50 support. We recommend waiting until ERX reaches this support level, maintains it and looks for a bounce to $40.

Buy range: above $33.50

Targets: $40

Stop Loss: below $33

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the Energy Select Sector Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is provided by S&P Dow Jones Indices (the “index provider”) and includes domestic companies from the energy sector which includes the following industries: oil, gas and consumable fuels; and energy equipment and services. The fund is non-diversified.

 

iShares MSCI Japan ETF 3X ETF (EWJ)

EWJ seems to be headed lower. The downward momentum is too strong and it appears to be headed to the $53 range. We recommend staying out of this one until it finds a base at $53 or if somehow it is able to hold this $57 support and bounce to $63.

Buy range: above $53

Targets: $63.50

Stop Loss: below $53

Fund Summary
iShares MSCI Japan ETF is an exchange-traded fund incorporated in the USA. The ETF’s objective seeks to provide investment results that correspond to the performance of the Japanese market, as measured by the MSCI Japan Index. The ETF invests in a representative sample of index stocks in a variety of sectors using a market cap weighted “portfolio sampling” technique.

 

Direxion Daily MSCI India Bull 3x ETF (INDL)

INDL had a bit of a pull back to what was once resistance and now may become support. This is a significant moment as we’ll find if this was due to a healthy pullback or a false breakout. Watch the $86 support. If it breaks $86 it will be headed lower to $80.55 support. If not then it could go to $100 as we expected.

Buy range: above $86

Targets: $100 (+16%)

Stop Loss: below $86

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the MSCI India Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is designed to measure the performance of the large- and mid-capitalization segments of the Indian equity market, covering approximately 85% of the Indian equity universe. The fund is non-diversified.

 

Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG)

JNUG seems to continue on its downward trend, however, it at one point almost broke out of this down trend – highlighted by blue bar. We are still not too excited about this one. However, it may be getting ready to turn soon. We will continue to watch this one as next week it may be ready for us to jump in. It may be headed as low as $9 before turning around.

Buy range: above $12.50

Targets: $15

Stop Loss: below $12

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the MVIS Global Junior Gold Miners Index. The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider. It is non-diversified.

 

Direxion Daily S&P Biotech Bull 3X ETF (LABU)

LABU seems to have held the $90 support once again this week. We no longer think that LABU is headed to $70 as it is holding this low-$90s range. It may be ready for the run to $110 as we expected.

Buy range: above $90

Targets: $100 – $110
Stop Loss: below $90

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the S&P Biotechnology Select Industry Index (“index”). The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is designed to measure the performance of the biotechnology sub-industry based on the Global Industry Classification Standards (“GICS”). The fund is non-diversified.

 

Direxion Daily Russia Bull 3X ETF (RUSL)

RUSL still looks sluggish. it appears to be headed lower and if it cannot find support in the $31 range it will surely head lower to $23. We would recommend staying out of this one for a bit until it finds a base.

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the MVIS Russia Index. The fund invests at least 80% of its net assets in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a rules-based index, intended to represent the overall performance of publically traded companies that are domiciled and primarily listed on an exchange in Russia or that are not Russian companies, but nonetheless generate at least 50% of their revenues in Russia. It is non-diversified.

 

Direxion Daily Semicondct Bull 3X ETF (SOXL)

If you had accumulated shares around the $150 range and sold with the $160-$170 range you may have made some decent profits last week. It seems that SOXL has dropped significantly back down to our initial buy range. Wait to see if it can hold $150, if so buy at $150 to ride to $160 and $170 – $180 range.

Buy range: above $150

Targets: $180

Stop Loss: below $150

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the PHLX Semiconductor Sector Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index measures the performance of domestic companies engaged in the design, distribution, manufacture and sale of semiconductors. The fund is non-diversified.

 

Direxion Daily S&P500 Bull 3X ETF (SPXL)

SPXL went as low as $48 and bounced back to above $50. It needs to stay above $50. Continue to watch this as it breaks above $50 for a run to $54. It is getting close to the buying range. Buy SPXL above $48.50 with a stop loss of just below $48.

Buy range: above $48.50

Targets: $54

Stop Loss: below $48

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the S&P 500® Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a float-adjusted, market capitalization-weighted index. The fund is non-diversified.

 

Direxion Daily 20+ Yr Trsy Bull 3X ETF (TMF)

We recommended that you sit out of TMF until it found a base at $18. Well it seems that TMF has finally found a base here. We recommended that you accumulate at the $18 range, if you had you’d be up 5%. We believe that TMF still has room to go until the $20 range.

Buy range: above $18

Targets: $20 (+10%)

Stop Loss: below $18

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index is a market value weighted index that includes publicly issued U.S. Treasury securities that have a remaining maturity of greater than 20 years. The fund is non-diversified.

 

VelocityShares 3x Long Natural Gas ETN (UGAZ)

UGAZ has been slowly and quietly running up here. It has reached our first target of $66 – congrats to those of you who decided to buy from our initial signal. Last week we mentioned that UGAZ appeared to have enough momentum to run to $66, and it did. If it can hold this support, you can expect it to run to $77.

Buy range: above $66

Targets: $77

Stop Loss: below $66

Fund Summary
VelocityShares Daily 3x Long Natural Gas ETN is an exchange-traded note issued in the USA. The Note will provide investors with a cash payment at the scheduled maturity or early redemption based on the performance of the underlying index, S&P GSCI Natural Gas Index ER.

 

VelocityShares 3x Long Gold ETN linked to the S&P GSCI Gold Index (UGLD)

UGLD has been taking a beating since April. However, it seems to have found support here at $8.30. Buy above $8.30 for a run to $9.30 – the next resistance point.

Buy range: above $8.30

Targets: $9.30

Stop Loss: below $8.25

Fund Summary
VelocityShares 3x Long Gold ETN is an exchange-traded note issued in the USA. The Note will provide investors with a cash payment at the scheduled maturity or early redemption based on the performance of the underlying index, the S&P GSCI® Gold Index Excess Return.

 

VelocityShares 3x Lng Crude Oil ETN New (UWT)

UWT seems to be heading to $40 and possibly $45. Support is between the $28 – $32 region. If you have read our Morning Coffee Segment – you would know that we are very bullish on Oil. UWT seems to have found a base here in the low $30s. We recommend accumulating in this range for a run to $40.

Buy range: between $32 – $35

Targets: $45

Stop Loss: below $28

Fund Summary
VelocityShares 3x Long Crude Oil ETN is an exchange-traded note issued by Citigroup Global Markets Holdings Inc. The Note will provide investors with a cash payment at the scheduled maturity or early redemption based on the performance of the underlying index, S&P GSCI Crude Oil Index ER.

 

Direxion Daily FTSE China Bull 3X ETF (YINN)

YINN was back to our initial buy point of $23 last week. It attempted a run to $27, however it hit a speed bump, and back down to $24. Our target is still $27. We recommend accumulating from the support region of $23 – $24 with the aim of selling at the resistance of $27. Stop loss is just below $23.

Buy range: above $23

Targets: $27

Stop Loss: below $23

Fund Summary
The investment seeks daily investment results, before fees and expenses, of 300% of the daily performance of the FTSE China 50 Index. The fund, under normal circumstances, invests at least 80% of its net assets (plus borrowing for investment purposes) in securities of the index, exchange-traded funds (“ETFs”) that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index. The index consists of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange (“SEHK”). The fund is non-diversified.

You must remember that leveraged ETFs are highly risky assets. Trading them could introduce increased risk to your portfolio. If you feel that that you may not be comfortable with the risk, you could simply trade the index funds that the funds listed above are following.