A frequent criticism of leveraged ETFs is that the funds deviate widely from the indexes they attempt to deliver double or triple the daily performances of on either the bullish or bearish sides, but some of the less volatile leveraged ETFs do decent jobs of stick to their performance objectives even over 30 days. [Gentler View of Leveraged ETFs]
To its credit, SPXS is not on Direxion’s list of leveraged bearish ETFs that have most widely deviated from triple the underlying index’s returns over the past 30 days.
The bull case for the bearish SPXS, at least in the short-term, could be gaining steam as slack economic data has S&P 500 puts outnumbering calls by the widest margin since October 2008, according to Bloomberg.
Direxion Daily S&P 500 Bear 3X Shares
Tom Lydon’s clients own shares of SPY.