Buy 3x ETF to Profit From Tech’s Downfall

Direxion Daily Technology Bear 3X Shares (NYSE:TYP) — This highly leveraged ETF attempts to mirror three times the inverse (opposite) of the daily results of the Russell 1000 Technology Index.

Yesterday, TYP gapped to its 20-day moving average on high volume. Its leveraged nature could provide traders with a significant profit if high p/e technology stocks continue to fall. Buy on a market intraday rally at $17 or lower for a quick run to $22. 

Leveraged and inverse ETFs entail unique risks, including but not limited to the use of leverage, aggressive and complex investment techniques, and the use of derivatives. While leveraged ETFs seek to deliver multiples of the performance of a benchmark, returns over longer periods will likely differ in amount and even direction.

These products require active, daily monitoring and management. They are not suitable for all investors. Stop-loss orders should be used to protect against losses. The Trade of the Day is not a fee-based managed portfolio, so buyers using illustrated charts must monitor their own buying and selling prices.

Trade of the Day – Direxion Daily Technology Bear 3X Shares (NYSE:TYP)
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