Yahoo! says Direxion Daily Financial Bull 3X Shares Fund (FAS)
“seeks daily investment results, before fees and expenses, of 300% of the
performance of the Russell 1000” index.
To reach such an aggressive goal, the fund invests borrowed
money on top of investor money. That makes for BIG losses as well as BIG gains
in the fund’s resale value.
FAS is a fund designed for gamblers, so there’s no way I’ll
recommend it for acquisition—to you or anyone else. I follow it and recommend
it as a thermometer that measures the heat or the chill of the stock market.
My 2-year Yahoo chart for FAS shows damage
done in 2011 and 2012 with a strong up trend in the last 12 months.
My
3-month chart reveals significant buying opportunities early in May of 2013 and
again in June and July, when the FAS 20-day moving average bounced off its
50-day m.a. I’d say that’s an encouraging moment for cautious investors and an
educated guess.
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