Buy FAZ Below $11 Profit from a short-term pullback in financial stocks with inverse ETF

Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) — This exchange-traded fund (ETF) seeks daily investment results, before fees and expenses, of 300% of the inverse of the Russell 1000 Financial Services Index. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index.

A pop above the 50-day moving average, now at $12.15, would signal a run to $13.50. Traders should not chase inverse funds like FAZ. Exercise patience and try to buy at $11 or lower.

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

These products are not suitable for all investors. They require active monitoring and management. Stop-loss orders should be used to protect against losses.