The Direxion Daily Brazil Bull 3x Shares (NYSEArca: BRZU) is up nearly 14% Thursday on volume that is approaching triple the daily average, bringing its five-day gain close to 24%. The Direxion Daily Emerging Markets Bull 3X Shares (NYSEArca: EDC) is up 9% in the past week. The Direxion Daily Brazil 3x Bear Shares (NYSEArca: BRZS) and BRZU are among the largest volume gainers in Direxion’s stable of triple-leveraged ETFs over the past week, according to issuer data.
“This puzzling run, coupled with the fact that year to date EM still has quite a bit of ground to make up in comparison to U.S. equities, not to mention the prolonged and hefty under-performance of EM in the trailing one year and more importantly trailing five year periods, makes us wonder if this is simply a short term ‘end of quarter’ type phenomenon or something that may have legs. As usual, we will just continue to watch the options and ETF fund flows in the space for further confirming evidence of what may be afoot here, and how long any ‘trend’ might last,” said Weisbruch.
Direxion Daily Brazil Bull 3x Shares
Tom Lydon’s clients own shares of EEM.