The SPY Flies Higher After Fed Reinstates Rate Hike Campaign: This Fund Offers 3X Leverage To Play The Upside
Portfolio Pulse from Melanie Schaffer
The SPDR S&P 500 (NYSE:SPY) was edging higher despite the Federal Reserve reinstating its rate hike campaign. Experienced traders may choose to play the SPY through Direxion ETFs, specifically Direxion Daily S&P 500 Bull 3X Shares (NYSE:SPXL) and Direxion Daily S&P 500 Bear 3X Shares (NYSE:SPXS). These ETFs are triple leveraged funds that track the movement of the SPY, seeking a return of 300% or -300% on the return of the benchmark index over a single day.
July 27, 2023 | 5:14 pm
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SPXS is a triple leveraged fund that tracks the movement of the SPY, seeking a return of -300% on the return of the benchmark index over a single day.
SPXS is a triple leveraged fund that seeks a return of -300% on the return of the SPY over a single day. This means that if SPY goes up, SPXS will likely go down, and vice versa. Given that SPY was edging higher, SPXS is likely to go down in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
SPXL gapped up 0.88% to start Thursday’s trading session before falling to completely close the lower gap. It has resistance above at $99.21 and at $106.80 and support below at $94.43 and at $87.80.
SPXL, a triple leveraged fund that tracks SPY, gapped up at the start of the trading session, indicating bullish sentiment. However, it fell to close the lower gap, suggesting some volatility. The ETF's resistance and support levels provide key price points for traders.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
SPY was edging higher despite the Federal Reserve reinstating its rate hike campaign.
The Federal Reserve's decision to reinstate its rate hike campaign was already priced into the market, which is why SPY was edging higher. This indicates that investors are confident in the ETF's performance despite the rate hike.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100