Direxion Daily Financial Bull 3X Shares (NYSE: FAS) — This highly leveraged exchange-traded fund (ETF) seeks daily investment results of three times the price performance of the Russell 1000 Financial Services Index.  

After the April high at close to $40, FAS plunged to below its bullish support line before reversing from a double-bottom under $18 in late August. Since then, a bull channel developed with current support below $24. Yesterday’s breakaway gap blew through the top of the channel and provides an opportunity to trade FAS to $32. But gaps of this nature (i.e., continuation gaps) are often closed, so traders should protect the position with a stop-loss order just under $27.  

The SEC warns that returns of leveraged ETFs will likely differ in amount and even direction over longer periods of time. So these products require active monitoring and management, as frequently as daily. They are not suitable for long-term investors.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.