Direxion Daily Technology Bull 3X Shares (NYSE: TYH) — This highly leveraged exchange-traded fund (ETF) attempts to mirror three times the daily results of the Russell 1000 Technology Index.
The major indices have broken both near and intermediate support zones. But the downturn is rapidly approaching the major November-December breakout zone. Historically, zones like this have provided support for the broad market and should be used as trading platforms.
Buy TYH on a further thrust lower and evidence of a market reversal. Support at $40 would be an ideal level to take new positions with a rebound target of $47 to $52.
Leveraged ETFs seek to deliver multiples of the performance of a benchmark, but 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, and stop-loss orders should be used to protect against losses.
The Trade of the Day is not a fee-based managed portfolio service, so traders must actively manage their own buy and sell prices.
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