As markets plateau and momentum seems to sputter, the prospects of downside risk loom large. Exchange traded fund investors are determined to minimize participation in major market declines, while continuing to capture at least a portion of any upside potential. Doing so requires a disciplined approach to tactical portfolio management.
On the upcoming webcast (Thursday, July 13 at 2 pm EDT), Systematic Tactical Management with Leveraged ETFs, Sylvia Jablonski, Managing Director and Institutional ETF Strategist at Direxion, Kyle Shealer, Chief Investment Officer & Partner at QST Capital, and Luke Carlson, Director of Business Development & Partner at QST Capital, will consider various tactical trading strategies to minimize potential effects of a correction in an extended bull market environment.
For instance, the Direxion Daily S&P Oil & Gas Exploration & Production Bull 3x Shares (NYSEArca: GUSH) and Direxion Daily S&P Oil & Gas Exploration & Production Bear Shares (NYSEArca: DRIP), which take the +/-3x or +/-300% daily performance of the S&P Oil & Gas Exploration & Production Select Industry Index, can help traders gain exposure to the swings in the crude oil industry after oil prices plunged and seek to consolidate in light of ongoing concerns over a global supply glut.
The technology sector has been among the best performing areas of the market this year as growth- and momentum-driven stocks lead the post election rally. However, as we recently witnessed, the Direxion Daily Technology Bear 3X Shares (NYSEArca: TECS) and Direxion Daily Technology Bull 3X Shares (NYSEArca: TECL) could help traders ride the twists and turns in the technology sector.
Additionally, the Direxion Daily 20+ Year Treasury Bull 3x Shares ETF (NYSEArca: TMF) and Direxion Daily 20+ Year Treasury Bear 3x Shares ETF (NYSEArca: TMV), which tracks the 300% long and short daily performance of the NYSE 20 Year Plus Treasury Bond Index, respectively, have been popular ways to more aggressive exposure to the shifts in the Treasury market. With the Federal Reserve embarking on interest rate normalization and a tighter monetary policy, bond traders should be wary of the potential ramifications after a three-decade long bull run in the fixed-income space.
Financial advisors who are interested in learning more about alternative tactical investment strategies can register for the Thursday, July 13 webcast here.