If the Dow Jones Industrial Average is poised to come back from its recent run of losses, it might have to be the sector that helped spur the historic bull run to get it back into the green and in Thursday’s trading session, it was technology helping to overcome Wednesday’s 600-point rout as evidenced in the Direxion Daily Technology Bull 3X ETF (NYSEArca: TECL).
TECL was up 10% at the close of the market, while the Dow gained over 400 points. TECL has been reaping the benefits of the historical bull run that has been seeing immense growth in technology stocks, which has helped it return almost 50% year-to-date and close to 80% within the last three years.
However, in the past five days, TECL hasn’t been immune to October’s sell-off, dipping below its 200-day moving average, but bouncing back today as the capital markets recover.
“What happened yesterday was the market got way oversold,” said Tom Essaye, founder of The Sevens Report. “Was a decline on earnings warranted? Yes, but not 10 percent.”
TECL seeks daily investment results equal to 300% of the daily performance of the Technology Select Sector Index. The fund invests in securities of the index, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index, which includes domestic companies from the technology sector.