This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Technical Setups From the Twittersphere

Direxion 3x Financial Bear ETF

First up this week is the Direxion 3x Bear ETF (FAZ), an exchange-traded fund that's designed to deliver three times the inverse performance of the Russell 1000 Financial Services Index. In other words, when financial stocks are hurting, FAZ is rallying hard. It's not surprising then, that this stock is breaking out right now.

Shares of FAZ broke out above $45 resistance on Thursday, with confirmation in Friday's weak session. That breakout is the buy signal for this ETF -- and a sign that banks will likely be moving lower in the near-term. The closest resistance level for FAZ right now is just shy of $52; that price makes for a solid upside target. If FAZ can surmount the excess of supply of shares above that price, there's considerable upside in this trade.

One thing to keep in mind with FAZ, as with any leveraged ETF, is the fact that this fund exhibits considerable tracking error over the long-term. So while the Russell 1000 Financial Services Index has fallen 20.3% year-to-date, this fund is only up 5.6%. As a trade, this ETF makes sense -- as a secular bet against financials, there are better alternatives.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
EWH $21.93 -0.72%
GLD $113.66 -0.08%
FAZ $12.38 1.73%
QID $36.86 2.16%
WYNN $125.88 -1.24%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs