Traders have pulled just over $31 million from FAZ in the fourth quarter, indicating that they could be taking profits in the leveraged inverse product as FAZ is sporting a fourth-quarter gain of over 38%.
Other factors may be hampering the sector. Some market observers warned that banks may even be cutting back on lending as bankers are becoming more concerned over the late-cycle U.S. economy. Indicators such as credit-card charge-off rates have increased, though the rate leveled off over the summer.
FAZ’s bullish counterpart is the Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS). FAS seeks to deliver three time the daily performance of the Russell 1000 Financial Services Index.
For more information on the banking sector, visit our financial category.
