ETF Trends
ETF Trends

Trading volume swelled in Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS) on Tuesday amidst a huge swing in the equity markets going into the closing bell.

FAS actually traded as low as $8.43 a share and ultimately closed above $10. That’s approximately a 20% intraday move from the low level of the day in this ETF.

Investors seemed to pile into financial stocks such as Bank of America (NYSE: BAC) and Morgan Stanley (NYSE: MS) late in the day yesterday, as we noted a pickup in Financial Select Sector SPDR (NYSEArca: XLF) trading volume as well as FAS as mentioned above, with over 100 million shares of FAS changing hands versus its average daily trading volume of 64.85 million shares.

FAS can be effectively used for short term trading strategies for levered exposure to the financials sector. [Financial ETFs Rattled]

Financials have clearly lagged the broader market with the sector down 6.98% in the past month versus the S&P 500 losing 3.97%, and down 26.87% year to date versus the S&P flagging 10%.

With prominent banking and financial names such as Bank of America, Morgan Stanley and Citigroup (NYSE: C) trading at their lowest levels since the crisis in 2009, it is evident to us that investors are using this extreme weakness as aggressive entry points in the sector, perhaps making “valuation” calls. [Stock Sell-Off Brings Out Value Investors]

Direxion Daily Financial Bull 3X Shares

Chart source: StockCharts.com.

For more information on Street One ETF research and ETF trade execution/liquidity services, contact pweisbruch@streetonefinancial.com.