Here’s my take on the Direxion Financial Bull 3x ETF ($FAS)…..and a lot of other stocks. (August 10, 2021)
FAS XLF BAC WFC GS MS UPM COF NUE STLD AA
I want to look at FAS ( NYSEARCA: FAS ) here. This is a triple ETF and it is 3X the price movement of the Russell 1000 Financial Index so there is a lot of stuff in here, it is up almost 3 percent today. This is the kind of thing that I would have liked to have spotted a few days ago, back here. Though frankly, there are a lot of stocks like this, in this kind of pattern.
To be honest, I probably wouldn’t have mentioned it anyway. The reason that I am mentioning it now is, because of the way the market is setting up, just with the financials working well, Bank of America ( NYSE: BAC ) going, Wells Fargo ( NYSE: WFC ) is doing really well. I think that is about buyable right now. Goldman ( NYSE: GS ) is doing really well. Morgan ( NYSE: MS ) just keeps on trending higher. JP Morgan ( NYSE: JPM ) is probably the worst of the bunch, technically, at least for now. Simply because it hasn’t quite moved out of congestion. Though, I would say that a move above 160.00 is probably going to put 170.00 in play.
There are so many things that are happening in this financial area right now. Again, look at the percentages here, 1.4 percent, 2.3 percent, this is good. Goldman ( NYSE: GS ) is probably moving up here. Earnings aren’t an issue, they are not until October. The weekly chart is looking good. We’ve got a lot of things that are working really well in a stock like Goldman ( NYSE: GS ).
Some of the others, the lower cap or smaller cap ones like Capital One Financial ( NYSE: COF ), I actually bought some of this just today. There are just so many things in the financial area that are working really, really well. I just thought I would point out the financial triple ETF because when the financials move this moves big time, almost 3 percent up today.
What you may want to do is, you are getting this video too late for today, but watch this on Wednesday. If it happens to pull back, wait for it to kind of settle out a bit and then start to take a position. But frankly, again, because it’s a triple ETF it wouldn’t surprise me to see this go up a little bit. Just remember, any little move in the underlying is going to be exasperated 3X in something like this. I think really, this could work for you.
I am just going to go ahead and do this, I am kind of riffing here, as they say. I put a couple of stocks on our Active Trade List today in the steel sector, Nucor ( NYSE: NUE ) is one of them. Steel Dynamics ( NASDAQ: STLD ) is another one. There are so many of these things that are working well. Alcoa ( NYSE: AA ) is another one, it is not steel, it’s aluminum. There are all of these metals that are working. The financial stocks are working but the infrastructure stocks, because of all the money that Congress is throwing into infrastructure, you are seeing these basic materials, the shippers, the financials, all of these things really start to rock.
So this would be my final sentiment to you, I guess, don’t be caught up in the FANG stocks all the time. There is more to it, there is more to the market than Facebook ( NASDAQ: FB ), Apple ( NASDAQ: AAPL ), Amazon ( NASDAQ: AMZN ), Netflix ( NASDAQ: NFLX ), NVIDIA ( NASDAQ: NVDA ), Google ( NASDAQ: GOOG ), and whatever else letter you want to put on the backend of that.
There is a season for every stock and you can’t sit there with your raincoat on and wait for the rain when it’s June or July or August, it doesn’t work that way. You want to be in the right stocks at the right time. That is one of the things that is going to help you succeed as a trader. The biggest thing, in my view, is, don’t lose your dough. Don’t lose a lot of money because you will have a heck of a time making it back. You are trying to make more back with less, the math doesn’t work.
The other thing is, always make sure you keep your money working in the right areas. Don’t just leave it stagnate in stocks that aren’t going anywhere and you are just looking at them saying, well, I know this isn’t going anywhere but, whatever. Anyway, that’s all I’ve got for you. I guess it turned out to be more than just FAS ( NYSEARCA: FAS ).
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