There are still plenty of earnings reports for traders to digest. This week, more than 23% of the S&P 500 reports third-quarter results. For some sectors, the percentages are higher, including the energy patch.
By the end of this week, more than 46% of the S&P Oil & Gas Exploration & Production Select Industry Index (SPSIOPTR) will have delivered quarterly results, meaning the Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (NYSEArca: GUSH) could be in the spotlight over the coming days.
GUSH’s bearish counterpart is the Direxion Daily S&P Oil & Gas Exploration & Production Bear 3x Shares (NYSEArca: DRIP).
A combination of diminished global output and rising global demand have helped reduce the global supply glut that dragged on oil prices for years. Production cuts from the Organization of Petroleum Exporting Countries and their allies have largely contributed to the cut in supply. Meanwhile, expanding economies around the world has bolstered demand for raw materials such as crude oil.
Rough October for Exploration and Production Stocks
For most of this year, exploration and production stocks have been solid performers, but that scenario took a turn for the worse this month. Entering Monday, GUSH was one of Direxion’s worst-performing triple-leveraged bullish ETFs while DRIP was one of the issuer’s best inverse leveraged funds on a month-to-date basis.
GUSH seeks daily investment results equal to 300% of the daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index. GUSH has been able to achieve its performance figures by investing at least 80% of its net assets in securities, ETFs and other financial instruments that provide daily leveraged exposure to the index. DRIP looks to deliver triple the daily inverse returns of that index.
Ahead of this week’s earnings onslaught, GUSH has been adding new money. Traders have added more than $1.8 million a day to the bullish GUSH over the past month, according to Direxion data.
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