Short interest for Direxion Emerging Markets Bear 3X Shares gives investors a sense of the degree to which investors are betting on the decline of Direxion Emerging Markets Bear 3X Shares's stock. Short interest data is updated every two weeks.

Direxion Emerging Markets Bear 3X Shares (ARCA:EDZ), Short Interest Report

Direxion Emerging Markets Bear 3X Shares

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BOIL

CORN

Betting Against Emerging Markets Pays Off--Lessons From Holding Leveraged ETFs During This Bear Market

TESLA

WEBS

Sell Hubris, Buy Humiliation

As ZeroHedge has pointed out, Bank of America’s Michael Hartnett has been one of Wall Street’s most accurate analysts recently.



Chart via ZeroHedge

Buying Humiliation: Taking The Opposite Side Of Michael Hartnett&#39;s Emerging Markets Trade Of 2023

Economics

SIGA

STNG

The Worst of Both Worlds

Earlier this week, TD Ameritrade&#39;s lead anchor, Oliver Renick, suggested that we were likely heading for a worst-case scenario: a recession with inflation still hot enough that the Fed would be compelled to continue to raise rates during it:

CPI Print Supports Worst-Case Scenario: The Fed Raising Rates Through A Recession

E-Direct Inc

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
It&#39;s not just stocks that are made for shorting. Plenty of traders tap exchange-traded funds on the bearish side of things and do so for a variety of reasons.
In some cases, traders will short ETFs to hedge against long exposure in a particular sector or stocks. In other instances, they&#39;re simply selling short broader market funds as an avenue for betting on downside. As <a href="https://www.benzinga.com/analyst-ratings/analyst-color/20/05/16021952/etf-short-sellers-are-targeting-retail-biotech">S3 Partners data indicate</a>, broader market funds are usually among the most shorted ETFs, but there are some sector and industry plays on the recent lists as well.
For traders that want to potentially gain on the downside, drawing inspiration from that the recent batch of most heavily shorted ETFs, here are some ideas to consider.
<h3>&nbsp;Direxion Daily S&amp;P Biotech Bear 3X Shares (LABD)</h3>
Only two ETFs have larger short interests in dollar terms than the SPDR S&amp;P Biotechn ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xbi#NYSE">XBI</a>). The &nbsp;Direxion Daily S&amp;P Biotech Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/labd#NYSE">LABD</a>) is the triple-leveraged inverse answer to that popular biotech fund.
As highlighted by XBI&#39;s 15.48% gain over the past month, shorting biotech, particularly in the coronavirus environment, is highly risky and doing so with LABD is even more so, but some argue the biotech trade is crowded and needs a respite, potentially making LABD an interesting short-term idea. Emphasis on &ldquo;short-term.&rdquo;
<h3>Direxion Daily MSCI Emerging Markets Bear 3X Shares (EDZ)</h3>
Not surprisingly, shorts are hiding out in the iShares MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eem#NYSE">EEM</a>). To be precise, there&#39;s $3.7 billion of short interest in the fund and traders taking that stance are being rewarded. Although EEM is higher over the past week, it&#39;s lower by almost 19% this year.
The Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>) is designed to deliver <a href="http://www.direxion.com/products/direxion-daily-emerging-markets-bull-3x-etf">triple the daily inverse returns</a> of that index.
Beyond the short interest, EDZ is worth considering because <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/05/15951479/it-might-be-time-to-get-sporty-with-a-geared-china-etf?viewDesktop=1">outside of China</a>, a broad swath of EEM&#39;s are currently in bear markets.
<h3>Direxion Daily Small Cap Bear 3X Shares (TZA)</h3>
There&#39;s $12.4 billion of short interest in the iShares Russell 2000 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iwm#NYSE">IWM</a>) and the Russell 2000 is the index the Direxion Daily Small Cap Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tza#NYSE">TZA</a>) tries to deliver triple the daily inverse returns of.
Off the March lows, IWM was an excellent trade, but this week&#39;s pullback has the fund in danger of retreating below its 50-day moving average, which could ignite rapid upside in TZA.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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Direxion Daily Emerging Markets Bear 3x Shares

LABD

3 Bearish ETFs To Profit Bullish Counterparts With Elevated Short Interest

Life for the bulls was rough in August. Major averages bounded from one end of a trading range to the other on a seemingly daily basis, sectors fell in and out of favorability in mere moments, and a now persistently inverted yield-curve is underpinning endless speculation of a recession.
But don&rsquo;t despair. That good news is that while U.S. markets struggle with their identity crises, international markets are showing clearer conviction. The bad news is that conviction is largely bearish.
We can get a sense of how short-term bears are positioning themselves via the surging performance of Direxion&rsquo;s suite of international leveraged bear ETFs.
<h3>Direxion Daily MSCI Developed Markets Bear 3X Shares</h3>
<a href="https://www.benzinga.com/files/u105576/4_9.png" onclick="imce.send('4_9.png'); return false;" title=""><img alt="4_9.png" src="https://www.benzinga.com/files/u105576/4_9.png" /></a>
 Source: Yahoo Finance, Data as of Sept 25, 3019
Gaining roughly 11% over July and August only to fall and bounce slightly into September, the Direxion Daily MSCI Developed Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dpk#NYSE">DPK</a>) has wavered on continued signs of a global economic slowdown, most of which are emanating from Europe. The persistent question of Brexit and the prospect of an impending economic shock from a no-deal exit from the European Union remains a major concern for the multinational banks and corporations doing business in the country. At the same time, weak economic data coming from Germany, one of the E.U&rsquo;s wealthiest member-states, has raised even more alarm from investors in the continent.
Aside from general anxiety, DPK was truly helped by the poor performance of multinational oil and gas concerns Royal Dutch Shell plc ADR Class A (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rds-a#NYSE">RDS-A</a>) and BP plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bp#NYSE">BP</a>). Other laggards bolstering DPK include British bank HSBC Holdings plc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hsbc#NYSE">HSBC</a>) and German software company SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>).
<h3>Direxion Daily MSCI Emerging Markets Bear 3X Shares</h3>
<a href="https://www.benzinga.com/files/u105576/3_20.png" onclick="imce.send('3_20.png'); return false;" title=""><img alt="3_20.png" src="https://www.benzinga.com/files/u105576/3_20.png" /></a>
 Source: Yahoo Finance, Data as of Sept 25, 3019
Trade tensions have also dimmed the outlook on emerging markets, as shown in the Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>), which is up about 8% over the past three months. However, EDZ saw a larger move back in August thanks largely to its exposure to China and other East Asian nations impacted by the trade war, though the aforementioned recessionary fears among developed economies has lowered growth expectations globally.
China tech stalwart Alibaba Group Holding Ltd ADR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) is a good example of the impact of both these concerns. While Alibaba has continued the trend of solid quarterly earnings, the stock is down roughly 17% from its 2019 high, both due to trade war woes as well as the general volatility of the U.S. equity markets. Other tech companies in developing nations like Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tsm#NYSE">TSM</a>), down 3%, and South African internet firm Naspers Limited (OTCMKTS:NPSNY), down 12%, are feeling similar headwinds to their near-term growth prospects.
<h3>Direxion Daily Russia Bull and Bear 3X Shares</h3>
<a href="https://www.benzinga.com/files/u105576/2_30.png" onclick="imce.send('2_30.png'); return false;" title=""><img alt="2_30.png" src="https://www.benzinga.com/files/u105576/2_30.png" /></a>

Source: Yahoo Finance, Data as of Sept 25, 3019
Aside from China, Russia has been among the most persistently bearish international markets in 2019 thanks largely to the country&#39;s reliance on oil exports. The bearish energy markets have helped the Direxion Daily Russia Bull and Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/russ#NYSE">RUSS</a>) rise by 12% in August before falling again and bouncing in September by about 4%.
The volatile pattern is a clear reflection of the fund&rsquo;s sector exposure, with 40% of the ETF devoted to energy companies like Lukoil (OTCMKTS: LUKOY), down almost 10% since July, and Gazprom PAO (OTCMKTS: OGZPY), down 10% down almost 3% in that span.
<h3>Direxion Daily FTSE China Bear 3X Shares</h3>
<a href="https://www.benzinga.com/files/u105576/1_39.png" onclick="imce.send('1_39.png'); return false;" title=""><img alt="1_39.png" src="https://www.benzinga.com/files/u105576/1_39.png" /></a>
 Source: Yahoo Finance, Data as of Sept 25, 3019
Up 14%over the past 3 months is, unsurprisingly, the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). Despite the U.S.-China trade war already being more than a year old, YANG has actually spent much of 2019 in the red, though it&rsquo;s recently hit a new six-month high back in August on new tariff threats and rekindled trade fears.
Investors have recently punished large Chinese tech firms like Tencent Holdings ADR (OTCMKTS:TCEHY) and Baidu Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) while the nation&rsquo;s &ldquo;Big Four&rdquo; financial companies&mdash;The Bank of China (OTCMKTS: BACHF), The China Construction Bank (OTCMKTS: CICHY), Industrial Commercial Bank of China (OTCMKTS: IDCBY) and The Agricultural Bank of China (OTCMKTS: ACGBF)&mdash;struggle to find investors as the nation&rsquo;s currency continues to tumble in the midst of the trade war.
An investor should carefully consider a Fund&rsquo;s investment objective, risks, charges, and expenses before investing. A Fund&rsquo;s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund&rsquo;s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund&rsquo;s prospectus and summary prospectus should be read carefully before investing.
Shares of the Direxion Shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 pm EST (when NAV is normally calculated) and do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense reimbursements or recoupments and fee waivers in effect during certain periods shown. Absent these reimbursements or recoupments and fee waivers, results would have been less favorable.
Direxion Shares Risks&nbsp;- An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF&rsquo;s investments in a particular industry or sector which can increase volatility. The use of derivatives such as futures contracts and swaps are subject to market risks that may cause their price to fluctuate over time. The ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index for periods other than a single day. For other risks including leverage, correlation, daily compounding, market volatility and risks specific to an industry or sector, please read the prospectus.
Distributor: Foreside Fund Services, LLC.
Direxion is a content partner of Benzinga

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General

BABA

BIDU

Direxion Daily Developed Markets Bear 3x Shares

HSBC

RDS-A

RUSS

YANG

Global Outlook: Not Good

Among the many curveballs the global economy has thrown at investors this year, one of the least expected might be the traction emerging markets have seen in the opening months of the year. Take a look at the year-to-date chart for the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>) against that of the broad market U.S. equity represented by the Direxion Daily S&amp;P 500 Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spxl#NYSE">SPXL</a>).
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-03-11_at_10.14.53_am.png" onclick="imce.send('screen_shot_2019-03-11_at_10.14.53_am.png'); return false;" title=""><img alt="screen_shot_2019-03-11_at_10.14.53_am.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-03-11_at_10.14.53_am.png" /></a> 
Source: Yahoo Finance. Data as of March 11, 2019. Past performance is not indicative of future results. Investment return and principal value of an investment will fluctuate so that an investor&#39;s shares, when redeemed, may be worth more or less than their original cost. &nbsp;Current performance may be lower or higher than the performance data quoted. For standardized performance, <a href="http://www.direxioninvestments.com/etfs#!/">click here</a>.
The two charts were neck-and-neck for much of the start of the year, only diverging late February due to a slight rise in energy prices and persistent investor anxiety surrounding international trade disputes.
This is pretty astounding given the headwinds emerging economies seemed to be facing coming into 2019. The U.S. dollar remains near historical highs according to the currency basket-pegged dollar index, and a high dollar valuation usually prices out many emerging market economies from raw materials that are priced in USD. That, coupled with U.S. equities experiencing some of the strongest months it&rsquo;s seen in years, would traditionally make emerging markets a much less appealing investment class than it currently seems to be.
Then, of course, there is the ongoing U.S.-China trade war, which <a href="https://www.cnbc.com/2018/10/09/world-economic-outlook-imf-cuts-global-growth-forecasts-on-trade-fight.html" style="text-decoration:none;">prompted a massive outflow of capital investments in EM economies late in 2018</a>, and is still expected to hit emerging markets hard. Overall, the global economic picture is expected to tighten over the course of the year anyway, whether or not the U.S. and China resolve their differences.
In light of all of that, how can the EDC be up 22 percent YTD?
Well, the announced delay of additional tariffs from the U.S. on another $200 billion in Chinese goods in late February helped the Chinese and Taiwanese components of the ETF, which account for just over a third of its makeup.
However, several smaller developments in global finance sent bullish signals to investors that emerging markets might still have room to run. Earlier in the month, India&rsquo;s central bank surprised markets by <a href="https://www.cnn.com/2019/02/07/economy/rbi-rate-cut-election-modi/index.html" style="text-decoration:none;">lowering interest rates after a pair of increases over 2018</a>.
The biggest catalyst underlying the strength of emerging markets might lie in trade activity in Southeast Asia. As the trade war between the two of the region&rsquo;s top trading partners progressed, some of the region&rsquo;s biggest economies like Malaysia, Thailand, and Indonesia experienced a massive influx of export demand and overall economic activity. In the case of the former, Malaysia had its <a href="https://asia.nikkei.com/Business/Markets/Nikkei-Markets/Malaysia-s-last-year-s-trade-surplus-widens-most-since-2012" style="text-decoration:none;">highest trade surplus in more than five years </a>over the course of 2018, while Thailand and Indonesia each marked<a href="https://asia.nikkei.com/Economy/Trade-war-hits-SE-Asia-growth-down-for-first-time-in-3-years" style="text-decoration:none;"> 4.1 and 5.17 percent annual GDP growth</a>, an increase of 1.3 and 2.5 percent over their respective 2017 GDP.
While these trends are still playing out, other factors may cause the worm to turn on emerging markets. For one, copper prices have been on the rise recently. While high demand in the material usually suggests strong economic development, since copper is so widely used in all areas of production and manufacturing, the uptick might end up slowing demand should the global economic picture dim as many economists predict. What&rsquo;s more, if the dollar does come back down to orbit, commodity prices across the board will likely rise, since they generally have an inverse relationship to the USD.
Proof of this can be seen below in the fund flow data for EDC. As you might expect, as the ETF had gained traction through the first two months of 2019, traders and investors have been gradually taking profits to the tune of about $1.56 million in outflows YTD.
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-03-11_at_10.30.43_am.png" onclick="imce.send('screen_shot_2019-03-11_at_10.30.43_am.png'); return false;" title=""><img alt="screen_shot_2019-03-11_at_10.30.43_am.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-03-11_at_10.30.43_am.png" /></a>
By that same token, inflow for the Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>) has ticked up more than $10 million in inflow since the start of the year.
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-03-11_at_10.30.28_am.png" onclick="imce.send('screen_shot_2019-03-11_at_10.30.28_am.png'); return false;" title=""><img alt="screen_shot_2019-03-11_at_10.30.28_am.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-03-11_at_10.30.28_am.png" /></a>
At the moment though, things still seem to be going swimmingly for emerging market economies, which you can see in the wavering investment and redemption in EDZ through February. That positive trend will likely find another wind if and when a trade agreement between the U.S. and China materializes.
However, keep an eye on activity coming out of both emerging market economies and major central banks. Monetary policies, like The People&rsquo;s Bank of China injecting 50 billion yuan into the economy to fight a projected economic slowdown and the U.S. Federal Reserve backing off its interest rate plan after four increases over 2018, suggest that two big players on either side of the developed/emerging equation are trying to stay ahead of any downturn that might materialize as 2019 rolls on.&nbsp;
<hr />
An investor should carefully consider a Fund&rsquo;s investment objective, risks, charges, and expenses before investing. A Fund&rsquo;s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund&rsquo;s prospectus and summary prospectus call 866.476.7523 or visit our website at direxioninvestments.com. A Fund&rsquo;s prospectus and summary prospectus should be read carefully before investing.
Shares of the Direxion Shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 pm EST (when NAV is normally calculated) and do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense reimbursements or recoupments and fee waivers in effect during certain periods shown. Absent these reimbursements or recoupments and fee waivers, results would have been less favorable.
Investing in a Direxion Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by an ETF increases the risk to the ETF. The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged, or daily inverse leveraged, investment results and intend to actively monitor and manage their investment. The Direxion Shares ETFs are not designed to track their respective underlying indices over a period of time longer than one day.
Distributor: Foreside Fund Services, LLC.

Specialty ETFs

Econ #s

Direxion Daily Emerging Markets Bull 3x Shares

SPXL

What Trade War? Emerging Markets Defy The Odds By Rolling With The Punches

Emerging markets assets are struggling this year, a fact confirmed by a year-to-date loss of more than 9 percent for the widely followed MSCI Emerging Markets Index.
Negative anecdotes for emerging markets assets do not end there. Exchange-traded funds tracking developing economies are besieged by outflows. For example, the largest ETF targeting the MSCI Emerging Markets Index has bled $5.12 billion in assets this year, a total surpassed by just three other US-listed ETFs.
<h3>What Happened</h3>
A frequent rallying cry of emerging markets bulls when the asset class sags is that developing world equities are inexpensive relative to domestic stocks. That is currently the case, but the discounts are not stark and are not proving to be enough to stoke interest among investors.
Still, some data points indicate short-term traders are nibbling at bullish positions in developing economies. That includes recent flows to the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>). EDC attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">triple the daily returns</a> of the MSCI Emerging Markets Index.
<h3>Why It&#39;s Important </h3>
Predictably, EDC is enduring punishment as emerging markets stocks slide. Proving that leveraged ETFs should not be held for extended time frames, EDC&#39;s year-to-date loss is more than three and a half times that of the MSCI Emerging Markets Index. Data suggest traders are betting that situation will soon reverse.
For the 30 days ended Sept. 24, EDC averaged daily inflows north of $645,000, <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">according to Direxion data</a>. That is good for one of the best inflows tallies among Direxion&#39;s leveraged bullish emerging markets ETFs over that period.
<h3>What&#39;s Next </h3>
Data not only confirm traders&#39; affinity for EDC, but that that preference is well ahead of that of the Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>). EDZ, EDC&#39;s bearish counterpart, attempts to <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">deliver triple the daily inverse returns</a> of the MSCI Emerging Markets Index.
Traders pulled an average of nearly $271,500 per day from the bearish EDZ over the past month, according to issuer data.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/09/12392467/ahead-of-election-day-traders-warm-to-leveraged-brazil-etf">Traders Like This Brazil ETF.</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/09/12399474/impact-shares-bolsters-etf-lineup-with-new-sustainable-etf">Another New ESG ETF</a>.

Asset Sales

Traders Tempt Fate With This Emerging Markets ETF

As tariffs, sanctions, and politics continue to coalesce into a shadow of uncertainty hanging overhead, the markets haven&rsquo;t blinked&mdash;at least not the US markets. The S&amp;P 500 Index is hovering around all-time highs, and the Q2 earnings season was a rousing success across the board.
But that strength hasn&rsquo;t spread across the globe. A myriad of headlines, &nbsp;Brexit ramifications, crisis in Turkey and Venezuela to name a few, have weighed heavily on the global markets.
Take a look at the Direxion Daily MSCI Emerging Markets Bull 3X Shares ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>), the triple-leveraged bullish ETF for the emerging markets. It&rsquo;s down 22 percent in the last three months as of this writing, as its counterpart, the Direxion Daily MSCI Emerging Markets Bear 3X Shares ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>), is trading flat with four times as many inflows.&nbsp;
<a href="https://www.benzinga.com/files/u105576/01_0.png" onclick="imce.send('01_0.png'); return false;" title=""><img alt="01_0.png" src="https://www.benzinga.com/files/u105576/01_0.png" /></a>
Source: Yahoo Finance
But while the emerging markets as a whole have struggled to find their way in 2018, other country-specific emerging market funds have quietly risen higher.
After bottoming out at the end of June to a low of about $68, the Direxion Daily MSCI India Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/indl#NYSE">INDL</a>) has since rallied back 26 percent in the succeeding 8 weeks.
<h3>India</h3>
The recent surge stems from a few causes, including <a href="https://www.bloomberg.com/news/articles/2018-08-06/india-keeps-door-open-for-trade-war-truce-with-the-u-s" style="text-decoration:none;">ongoing negotiations with the U.S.</a> after postponing some retaliatory tariffs and a drop in cost of crude; a commodity that India is also<a href="https://www.reuters.com/article/us-usa-crude-india/u-s-oil-exports-to-india-soar-ahead-of-sanctions-on-iran-idUSKBN1K20AS" style="text-decoration:none;"> increasingly turning to America for</a> in the face of new sanctions on Iranian oil. However, what&rsquo;s truly driven price action in the MSCI India Index (NDEUSIA) is a rash of stellar financial reports from the country&rsquo;s leading public sector banks and energy companies, bolstering some of the index&rsquo;s largest holdings in those industries.
<h3>Mexico</h3>
Since the election of incoming social democrat president Andres Manuel Lopez Obrador, Mexico&rsquo;s broad market index has skyrocketed by 40 percent, and the Direxion Daily MSCI Mexico Bull 3X Shares ETF (NYSE:MEXX) has rallied 53 percent.
Part of this enthusiasm for the new administration is a seeming fondness developing between President-elect Obrador and U.S. President Donald Trump, something that, as of Monday, has resulted in an overhaul of NAFTA for the two nations.
Other than signs of a <a href="https://www.businessinsider.com/juan-trump-nickname-mexican-president-lopez-obrador-us-relations-2018-7" style="text-decoration:none;">blooming presidential friendship </a>and a stable, <a href="https://www.ft.com/content/08b6e470-87c0-11e8-bf9e-8771d5404543" style="text-decoration:none;">though not stellar, economy</a>, Mexico has actually not had strong catalysts supporting some of the enthusiasm that struck its market following the July first election results. And, with the real risk of President Trump<a href="https://www.reuters.com/article/us-autos-trade/eu-mexico-automakers-blast-trump-auto-tariff-plan-idUSKBN1K91TN" style="text-decoration:none;"> instating tariffs on auto imports</a> in his hard-line approach to trade negotiations and Obrador&rsquo;s reluctance to open up the country&rsquo;s oil <a href="https://www.reuters.com/article/us-mexico-oil/mexico-business-group-unhappy-about-delay-in-oil-auctions-idUSKBN1KA041" style="text-decoration:none;">industry to private investment</a>, traders eyeing a broad Mexico index should stay abreast of the country&rsquo;s <a href="https://www.reuters.com/article/us-mexico-economy-rates/mexicos-central-bank-holds-rates-steady-trims-growth-outlook-idUSKBN1KN0G4" style="text-decoration:none;">diminished, 2 percent growth outlook for coming quarters</a>.
<a href="https://www.benzinga.com/files/u105576/1_8.png" onclick="imce.send('1_8.png'); return false;" title=""><img alt="1_8.png" src="https://www.benzinga.com/files/u105576/1_8.png" /></a>
Source: Yahoo Finance

INDL

As Emerging Markets Struggle, Two Countries Make Their Claim

The 11 percent slide iShares MSCI Turkey ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tur#NASDAQ">TUR</a>) took on Monday had a sequel on Friday&#39;s open, slumping another 5 percent.&nbsp; The volume from the initial sell off was more than 12 times the daily average as that country&#39;s efforts to prop up its flailing currency, the lira, delivered no positive results.
All told, TUR is off 25 percent from its August high. Although Turkey is a negligible part of the MSCI Emerging Markets Index, that benchmark is wilting in the wake of the Turkish turmoil and is off 3.2 percent over the pat week.
<h3>What Happened</h3>
What is bad for Turkish stocks and the broader emerging markets complex is beneficial to the Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>). EDZ is designed to deliver<a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf"> triple the daily inverse returns</a> of the MSCI Emerging Markets Index.
On Monday, EDZ jumped 4.8 percent on above-average volume, extending its one-week gain to 9.6 percent. With the entire week&#39;s gains, EDZ is up nearly 20 percent this month, making it one of the best-performing inverse leveraged funds in Direxion&#39;s lineup.
<h3>Why It&#39;s Important</h3>
EDZ&#39;s recent bullishness is important because the slump in Turkish stocks is punishing other emerging markets. For example, Direxion&#39;s three worst-performing leveraged bullish funds last Friday were each emerging markets ETFs. On Monday, 40 emerging markets ETFs hit 52-week lows.
&ldquo;There are only three options to halt the freefall of the Turkish lira,&rdquo;&nbsp;<a href="https://finance.yahoo.com/news/solving-turkeys-problems-will-require-just-raising-interest-rates-171850606.html" target="_blank">tweeted Dani Rodrik</a>, an economist at Harvard University. &ldquo;1. Sell dollars at the expense of using up the central bank&rsquo;s reserves. 2. Announce a serious rate hike. 3. Capital controls. Choose your poison.&rdquo;
<h3>What&#39;s Next </h3>
The near-term outlook is murky at best for Turkish assets with few, if any, market observers willing to openly voice bullish opinions. That favors the bearish EDZ, but traders should remember EDZ should be deployed as a short-term trade.
Turkish equities are significantly more volatile than broader emerging markets benchmarks and any snap-back buying there would punish EDZ while favoring the fund&#39;s bullish counterpart, the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>). EDC looks to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">triple the daily returns</a> of the MSCI Emerging Markets Index.
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Emerging Markets

iShares MSCI Turkey Investable Market Index Fund

This ETF Loves Turkish Turmoil

The widely followed MSCI Emerging Markets is flirting with a year-to-date loss of 9.40 percent. On Thursday, 16 emerging markets exchange traded funds&nbsp;hit 52-week lows.
That could present a good opportunity for the&nbsp;Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edz#NYSE">EDZ</a>), which plays emerging markets to the downside.&nbsp;
EDZ is designed to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">triple the daily inverse returns</a> of the MSCI Emerging Market Index. Translation: EDZ is a volatile bet on a volatile asset class, meaning traders should heed the &ldquo;daily&rdquo; part of EDZ&#39;s objective and not be seduced by the fund&#39;s performance over longer holding periods, as impressive as they may be.
&ldquo;As emerging-market stocks extend a $3.8 trillion rout, exchange-traded funds that short-sell them -- sometimes borrowing money on top of their investors&rsquo; capital -- are making annualized returns of as much as 190 percent,&rdquo; according to<a href="https://www.bloomberg.com/news/articles/2018-07-05/short-selling-etfs-make-a-killing-in-emerging-markets-amid-rout">&nbsp;Bloomberg.</a> &ldquo;That contrasts with long-only ETFs that have lost about 18 percent, or an annualized 35 percent, since the slump began in late January.&rdquo;
Why It&#39;s Important 
Data suggest bearish traders are piling into short positions on the iShares MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eem#NYSE">EEM</a>) while flows into inverse leveraged emerging markets have lightened up in recent weeks.
&ldquo;Short interest in the iShares MSCI Emerging Markets ETF has jumped to $4 billion, the highest amount wagered on further equity declines since April 2014, according to IHS Markit data,&rdquo; Bloomberg noted.
For the 30 days ended July 3rd, flows into EDZ were steady. Over that period the fund averaged daily inflows of nearly $192,000, <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">according to Direxion data</a>. During the same period, traders yanked an average of almost $231,000 per day from EDZ&#39;s bullish counterpart, the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>).
What&#39;s Next
EDZ could continue proving useful for short-term traders as 2018 moves along. If trade tensions escalate, Chinese stocks could continue sagging, a relevant point because the MSCI Emerging Markets Index devotes 32.49 percent to China, by far the benchmark&#39;s largest country allocation.
Additionally, Brazil, home to one of the emerging world&#39;s worst-performing equity markets this year, holds national elections in October. Brazil, Latin America&#39;s largest economy, is 5.87 percent of the MSCI index&#39;s weight.
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Emerging Markets Bears Prowling With This ETF

Emerging markets equities and exchange traded funds have been caught up in the drama recently afflicting U.S. stocks. For example, the widely followed MSCI Emerging Markets Index is down 7.5 percent over the past week while the FTSE China 50 Index, a gauge of the largest Chinese stocks trading in Hong Kong, is lower by 5.6 percent over that period.
&nbsp;
Should emerging markets stocks continue faltering, it would not be surprising to see some traders flock to inverse ETFs, including the Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>). After jumping about 10 percent the Monday before the sell-off on volume that was roughly quadruple the daily average, the Direxion Daily MSCI Emerging Markets Bear 3X Shares sported a scintillating one-week gain of nearly 25 percent.
&nbsp;
EDZ attempts to deliver triple the daily inverse returns of the MSCI Emerging Markets Index. The fund&#39;s bullish counterpart, the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>), was punished to the tune of 21.5 percent over that week.
&nbsp;
Already Drawing A Crowd
&nbsp;
Some traders were not surprised by the recent bullishness surrounding the bearish EDZ. For the five days ended Feb. 2nd, volume in the triple-leveraged inverse ETF was 73.6 percent higher than the trailing 20-day average, according to Direxion data.
&nbsp;
Inflows accompanied that large volume increase. Over the past month, traders have been adding an average of almost $540,000 to the bearish EDZ, <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">according to Direxion data</a>. Interestingly, EDC&#39;s average daily inflows over the same period are over $1.8 million.&nbsp;
&nbsp;
Emerging markets stocks are consistently more volatile than U.S. equities, reminding traders that products like EDC and EDZ are best used as short-term trades confined to a day or two. Just look at the punishment suffered by traders that held EDC for the last five days.
&nbsp;
China, Too
&nbsp;
The Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="/stock/yang#NYSE">YANG</a>), which seeks to deliver triple the daily inverse returns of the FTSE China 50 Index, is also surging and drawing acclaim from traders.
&nbsp;
YANG jumped as high as 50 percent from its February low during the spike in volatility and is currently up 25 percent for the month.
&nbsp;
Traders were prepared for YANG&#39;s recent jump as well as the bearish China fund averaged daily inflows of nearly $419,000 over the past month, <a href="http:// http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>.
&nbsp;
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Some Traders Saw The Emerging Markets Decline Coming

The MSCI Emerging Markets Index is up more than 25 percent year-to-date, putting the widely-followed gauge of developing world equities on pace for its best annual performance since 2012. Investors are responding, making emerging markets exchange traded funds (ETFs) some of this year&#39;s top asset-gathering funds.
&nbsp;
Risk-tolerant, tactical traders can take advantage of short-term emerging markets trends with leveraged ETFs, such as the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>). EDC is designed to deliver triple the daily returns of the MSCI Emerging Markets Index.
&nbsp;
A bet on EDC, or any traditional diversified emerging markets ETF for that matter, is a heavy bet on Asia. The MSCI Emerging Markets Index allocates over 55 percent of its combined geographic weight to China, South Korea and Taiwan.
&nbsp;
Price Action
&nbsp;
Emerging markets had been lagging developed markets stocks for several years, a trend that showed signs of breaking last year as measured by the ratio of the MSCI Emerging Markets Index against the MSCI EAFE Index.
&nbsp;
&ldquo;For years, the valuation levels for developed markets (MSCI EAFE Index) have been above historic levels as emerging markets (MSCI Emerging Markets Index)&nbsp;played catch up,&rdquo; said Direxion <a href="http://www.direxioninvestments.com/xchange/assessing-the-strength-of-the-major-emerging-markets?utm_campaign=Xchange%20-%20Emerging%20Mkts8.15.17&amp;utm_medium=email&amp;utm_source=Eloqua&amp;elqTrackId=19085CEE8B03EAD0F7DEB6D2E2294859&amp;elq=be70c470846b456c8de4f7327a0d9ed7&amp;elqaid=2872&amp;elqat=1&amp;elqCampaignId=2009">in a recent note</a>. &ldquo;The price ratio shows emerging markets outperforming developed markets in 2016 and so far in 2017.&rdquo;&nbsp;
&nbsp;
Despite that, traders seem bearish on the index. Over the past month, the ETF has averaged daily inflows of more than $32,000, <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">according to Direxion data</a>. However, EDC&#39;s bearish counterpart, the Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSEARCA:EDZ) has average inflows of more than $314,000 per day over that period.
&nbsp;
Big Markets
&nbsp;
The performances of EDC and EDZ on the bearish side, are largely determined by the largest emerging markets, such as China and India.
&nbsp;
&ldquo;Much like the U.S, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">China&rsquo;s economy</a> has been in a pattern of middling growth interspersed with brief spurts of productivity. In recent months, this trend has manifested in an upswing in China&rsquo;s manufacturing PMI by one to two points above the benchmark,&rdquo; said Direxion.
&nbsp;
India, Asia&#39;s third-largest economy, is expected to post GDP growth of 7 percent this year, a rate that is expected to hold true for another eight years. Some traders are responding to those India expectations as the Direxion Daily MSCI India Bull 3X Shares (NYSEARCA:INDL), the only leveraged India ETF, has seen a <a href="http://www.direxioninvestments.com/products/direxion-daily-india-bull-3x-etf">sharp uptick in turnover</a> in recent sessions.&nbsp;
&nbsp;
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Photo credit: public domain

Playing The Emerging Markets Trade With Leveraged ETFs

After a weak 2015, emerging markets assets, broadly speaking, delivered resurgent performances last year. This is especially true since Trump&#39;s victory on November 8. Since election, major emerging market ETFs are all up around 4 percent, compared to the S&amp;P 500&#39;s 10 percent rally.
However, one emerging market ETF is actually outperforming the market during this time:&nbsp;theDirexion Daily Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>).
As its name implies, <a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf">EDC is a triple-leveraged ETF</a>, meaning this is an instrument to be used on a tactical basis by active traders looking for potentially large intraday gains. EDC is not intended to be held overnight or for weeks at a time.
&ldquo;Leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage,&quot; according to Direxion. &quot;They seek daily goals and should not be expected to track the underlying index over periods longer than one day.&quot;
EDC attempts to deliver triple the daily performance of the widely followed MSCI Emerging Markets Index. The ETF has a bearish counterpart, the Direxion Daily Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>), which looks to deliver triple the daily inverse performance of the MSCI Emerging Markets Index.
Both ETFs are heavily weighted in Asia&mdash;about 50 percent of their weightings are in China, South Korea, and Taiwan. As of this writing, the only holding in the fund with at least a 4 percent weighting is&nbsp;SAMSUNG ELECTRONIC (OTCMKTS:SSNLF).&nbsp;
<h3>
	The Near-Term Outlook</h3>
Several key technical indicators show that the move in EDC may not be over. For one, EDC is currently trading around $72. If it were to break through $73, and there doesn&#39;t appear to be significant resistance until the $90 level. Notably, the 7-day moving average has crossed other significant moving averages, including 50-day and 200-day. This indicates a bullish uptrend.
It should also be noted that the 20-day Relative Strength Index, or RSI, is currently at 70.27 percent. Anything above 50 percent is considered bullish. RSI is a lagging indicator, meaning it&#39;s more useful for confirming a trend. This strong number seems to be doing exactly that.&nbsp;

Intraday Update

The Emerging Markets ETF That's Outperforming Its Peers

The MSCI Emerging Markets Index, to which about $1.5 trillion in active and passive assets are benchmarked, is up 18.4 percent year-to-date, putting the widely followed emerging markets gauge on pace for its best annual performance since 2010.
That also means risk-tolerant traders have enjoyed a solid run by the Direxion Daily Emerging Markets Bull 3X Shares (Direxion Shares Exchange Traded Fund Trust (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>)). EDC attempts to deliver three times the daily returns of the MSCI Emerging Markets Index. Leveraged ETFs are best used as short-term trading instruments. For example, EDC is not up three times as much as its underlying index year-to-date, but over the past month, the leveraged ETF is up slightly more than triple the emerging markets benchmark.
<h3>The Power Of A Weaker U.S. Dollar</h3>
The weaker U.S. dollar has been a primary catalyst in driving developing world equities higher this year and with it appearing as though the Federal Reserve will only raise interest rates once this year, if that, the weaker dollar could persist.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/08/8361087/these-arent-middling-returns-with-this-mid-cap-etf">These Aren't Middling Returns With This Mid-Cap ETF</a></bzrelatedlink>
&ldquo;The dollar continues to show no signs of strengthening. Quarter-to-date (8/17) the dollar has weakened -1.41 percent. Current Personal Consumption Expenditures (PCE) data has been below trailing FED expected levels. PCE tracks the overall price changes for goods and services purchased by consumers. As of the last report, PCE is at 1.6 percent below the expected 2.0 percent level,&rdquo; <a href="http://www.direxioninvestments.com/xchange/market-focus-emerging-markets?utm_campaign=Xchange%20-%20Emerging%20Markets&amp;utm_medium=email&amp;utm_source=Eloqua&amp;elqTrackId=DDB79F35D8B1C8426A55482BF6F3096C&amp;elq=0bc491130f0e4862a32ffbbe06018057&amp;elqaid=2399&amp;elqat=1&amp;elqCampaignId=1589">said Direxion in a recent note</a>.
As investors have learned in recent years, even the mere speculation of hawkish action by the Fed can be a drag on emerging markets stocks, and the stronger dollar weighs on commodities, pressuring stocks in commodities-driven developing economies.
<h3>What It Means For Emerging Markets</h3>
The weaker the dollar remains, the more appealing emerging assets are. Emerging markets governments and some corporations binge borrowed in dollars during the various versions of the Fed&#39;s quantitative easing programs. It looked smart as the dollar weakened against a plethora of developed and emerging currencies, but those emerging markets borrowers were caught off guard when the dollar started soaring several years ago.
&ldquo;Emerging markets political tensions have subsided. The market seems to have recovered from the unexpected/unsuccessful coup in Turkey. And in Brazil, the political tension surrounding the impeachment of President Rousseff coupled with the excitement of the Olympic Games continues to shed positive light on the region,&rdquo; added Direxion.
EDC&#39;s<a href="http://www.direxioninvestments.com/products/direxion-daily-emerging-markets-bull-3x-etf"> bearish counterpart</a> is the Direxion Daily Emerging Markets Bear 3X Shares (Direxion Shares Exchange Traded Fund Trust (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>)).
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Leveraging Up The Emerging Markets ETF Trade

Finding the &ldquo;right&rdquo; emerging markets exchange traded fund these days is no easy task. What qualifies as &ldquo;good&rdquo; among emerging markets these days could be the fund that is not performing as badly as its peers or the one that is not losing as much money as rivals.

	Anecdotes pertaining to emerging markets outflows are staggering. For example, third-quarter outflows from developing world stocks were the first since 2009 and the worst since 2008. As for ETFs, the Vanguard FTSE Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) and the iShares MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>), the two largest emerging markets ETFs by assets, shed $3.6 billion and $2.9 billion in the third quarter on their way to posting an average loss of 18.1 percent. EEM&#39;s outflows were second only to VWO and nearly two and a half times more than the third-worst ETF in terms of third-quarter outflows.

	From Beijing to <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5867635/etf-bears-growl-south-of-the-border">Moscow to Sao Paulo</a>, emerging markets and ETFs look like a hall of shame as an array of single-country emerging markets have been afflicted by the same outflows virus as the diversified EEM and VWO.

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5881797/buyback-etfs-look-to-turn-it-up-a-notch-in-the-fourth-quarter">Buyback ETFs Look To Turn It Up A Notch In The Fourth Quarter</a>

	Tumbling developing world stocks are opening the door to some compelling opportunities for risk-tolerant, short-term traders with bearish leveraged emerging markets ETFs. Whether or not those traders are taking advantage of those opportunities <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5791591/traders-are-getting-it-wrong-with-leveraged-emerging-markets-">is a different story</a>.

	The Direxion Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>), which attempts to deliver three times the daily inverse performance of the widely followed MSCI Emerging Markets Index, should be in style right now. As in cover of GQ and Vogue type of style. Instead, traders&#39; treatment of EDZ borders on a fashionista&#39;s treatment of someone wearing white pants after Labor Day.

	In the third quarter, traders added just $35.5 million to EDZ, indicating plenty of traders have missed out on the ETF&#39;s better than 55 percent surge over the past 90 days. One way of looking at that scenario is that for every dollar pulled from EEM and VWO, mere pennies trickled into EDZ even though emerging markets ETFs long ago revealed themselves to be damaged goods.

	As is so frequently seen with leveraged ETFs, traders&#39; bullish biases are getting in the way. That would explain the nearly $65 million that flowed into EDZ&#39;s bullish counterpart, the Direxion Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>), during the third quarter even as that ETF lost almost 46 percent.

	A similar scenario is at work with the ProShares UltraShort MSCI Brazil ETF (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>) and the Direxion Daily Brazil Bull 3x Shares (NYSE: <a class="ticker" href="/stock/brzu#NYSE">BRZU</a>) even though BZQ has proven to be the only Brazil ETF worth embracing from the long side.

	There are some signs traders are finally warming to EDZ, albeit slowly. Over the past month, the ETF&#39;s average daily creation and redemption activity is positive, meaning creations outpace redemptions, and over the past five days, the ETF&#39;s volume has been 6 percent above the trailing 20-day average, <a href="http://www.direxioninvestments.com/wp-content/uploads/2014/03/Direxion-Daily-ETF.pdf?utm_campaign=Daily%20Performance%20Email%20100115&amp;utm_medium=email&amp;utm_source=Eloqua&amp;elq=2c99e45d3870437995ffbe47ec4d5b1b&amp;elqCampaignId=1167&amp;elqaid=1990&amp;elqat=1&amp;elqTrackId=4328e28ae87e4d44981c6aee5451a6ee">according to Direxion data</a>.

BRZU

Egregious Offense: Traders Miss Out On The Right Emerging Markets ETF

There is no shortage of anecdotes and data points illustrating the woes being encountered by emerging markets stocks and the corresponding exchange traded funds. Over the past 90 days, 19 of the 40 worst-performing non-leveraged ETFs are emerging markets funds.

	The iShares MSCI Brazil Capped ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>) is the &ldquo;best&rdquo; performer of that group with a loss of almost 28 percent. Diversified emerging markets funds are offering no shelter from the storm either, as the Vanguard FTSE Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) and the iShares MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>), the two largest emerging markets ETFs by asset, are each off 24 percent over the past three months.

	Tumbling developing world stocks are opening the door to some compelling opportunities for risk-tolerant, short-term traders with bearish leveraged emerging markets ETFs. Whether or not those traders are taking the opportunities is a different story. The triple leveraged plays on the MSCI Emerging Markets Index paint the picture of lost opportunity with inverse leveraged emerging markets ETFs.
<h3>
	Bull &amp; Bear</h3>

	The Direxion Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>), which attempts to deliver three times the daily inverse of the MSCI Emerging Markets Index, has more than doubled over the past 90 days. EDZ&#39;s bullish counterpart, the Direxion Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>) has lost 58 percent over that span. Not surprisingly, it is EDZ that is falling victim to outflows in the current quarter. Traders have yanked $21.3 million from EDZ, but have allocated nearly $51 million to EDC since the start of July.

	EDZ is merely Direxion&#39;s third-best inverse leveraged on a month-to-date basis, according to issuer data, yet it goes unloved by traders. Maybe traders are doing exactly what they should be with EDZ. That is moving in and out of the fund after a day or a few day of holding it. Over the past five days, EDZ&#39;s volume has been more than 87 percent above the 20-day average, <a href="http://www.direxioninvestments.com/wp-content/uploads/2014/03/Direxion-Daily-ETF.pdf?utm_campaign=Daily%20Performance%20Email%20082515&amp;utm_medium=email&amp;utm_source=Eloqua&amp;elq=f113bd97bc694e6ca9083e1daeb131f0&amp;elqCampaignId=1118&amp;elqaid=1938&amp;elqat=1&amp;elqTrackId=88d4f59ff494414fb4ea9cbc4269428b">according to Direxion data</a>.

	Not surprisingly, because this is a scenario that has been examined several times in recent weeks. Take the case of leveraged Brazil ETFs. The Direxion Daily Brazil Bull 3x Shares (NYSE: <a class="ticker" href="/stock/brzu#NYSE">BRZU</a>) is just a few days more than three months past a 1-for-10 reverse split and the fund has shed more than two-thirds of its post-split. But don&#39;t worry. Traders are preferring BRZU to its bullish counterpart, the ProShares UltraShort MSCI Brazil ETF (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>).

	BZQ&#39;s 73.4 percent over the past 90 days has not been enough to prevent $15 million in third-quarter outflows, but nearly $21.5 million <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5778482/theres-just-one-good-brazil-etf-and-investors-are-ignoring-it">has gone into BRZU</a>.

	As <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5785262/cheap-stocks-provide-fools-gold-for-bettors-on-bullish-levera">noted on Monday</a>, similar chicanery is afoot with the Direxion Daily Russia Bull 3x Shares (NYSE: <a class="ticker" href="/stock/rusl#NYSE">RUSL</a>) and the Direxion Daily Russia Bear 3x Shares (NYSE: <a class="ticker" href="/stock/russ#NYSE">RUSS</a>). The former is flailing but taking in new money while the latter surges and bleeds assets.

	These scenarios highlight the bullish bias nearly all investors are born with and so many work so diligently to overcome. It is traders&#39; and investors&#39; predilection for bullishness that explains why the bearish leveraged India, Latin America, South Korea ETFs and Direxion&#39;s bearish answer to BRZU no longer exist. If those ETFs were still around, chances are they would be soaring these days...and not attracting much money.

RUSL

Traders Are Getting It Wrong With Leveraged Emerging Markets ETFs

One of the hottest investment strategy themes over the past few years has been to invest in <a data-mce-href="http://www.investmentcontrarians.com/emerging-markets/" href="http://www.investmentcontrarians.com/emerging-markets/" target="_blank">emerging markets</a>. For years, these markets were very attractive to investors, as these economies tended to have much higher growth rates when compared to growth in the developed countries.

	However, this investment strategy is now beginning to look questionable, as it appears that growth rates are much lower than many had expected.

	The latest look at emerging markets from a fundamental standpoint comes from Paul Polman, CEO of Unilever PLC (NYSE: <a class="ticker" href="/stock/ul#NYSE">UL</a>).

	Polman stated that he believes that economically, these markets will continue to remain quite slow for some time, as these nations now need significant structural changes following their boom years. (Source: Bloomberg, December 2, 2013.)

	Also Read: <a data-mce-href="http://www.investmentcontrarians.com/nyse-2013-stock-market-holidays/" href="http://www.investmentcontrarians.com/nyse-2013-stock-market-holidays/">NYSE Holidays 2014</a>

	This type of information is certainly a negative for any long-term investment strategy in the emerging markets. Structural reforms do not happen overnight; here in America, it&rsquo;s obvious how slow and difficult it is to make any real structural changes.

	For many, the investment strategy in emerging markets appears enticing because it seems so exotic. But comments such as those from the CEO of Unilever should be an eye-opener to these investors. Unilever obtains most of its revenue from emerging markets, so the company can feel the pulse of what&rsquo;s really happening on the ground in these markets.

	Frankly speaking, this isn&rsquo;t a surprise to me; in these pages, I&rsquo;ve mentioned seeing several warning signs that have alerted me to the weakness in not only the domestic economy, but the emerging markets as well.

	<a data-mce-href="http://www.investmentcontrarians.com/files/2013/12/iShares-MSCI-Emerging-Markets-Chart.jpg" href="http://www.investmentcontrarians.com/files/2013/12/iShares-MSCI-Emerging-Markets-Chart.jpg" target="_blank"><img alt="iShares MSCI Emerging Markets Chart" data-mce-src="http://www.investmentcontrarians.com/files/2013/12/iShares-MSCI-Emerging-Markets-Chart.jpg" height="254" src="http://www.investmentcontrarians.com/files/2013/12/iShares-MSCI-Emerging-Markets-Chart.jpg" title="iShares MSCI Emerging Markets Chart" width="570" /></a>

	Chart courtesy of www.StockCharts.com

	The three-year chart above shows the activity of the exchange-traded fund (ETF) iShares MSCI Emerging Markets (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) compared to the activity in the price of copper (as indicated by the solid black line).

	As you can see, the price of copper and the activity in the emerging markets were extremely correlated up until the end of 2012. In 2013, copper prices continued selling off, while these markets began to rebound.

	I believe this divergence is a result of money printing allowing institutions the ability to allocate capital into the emerging markets, even though fundamental drivers, such as copper, are indicating that these economies are not accelerating.

	In my experience, this type of divergence doesn&rsquo;t last forever. The latest information from the CEO of a company that has extensive operations in emerging markets globally has, yet again, increased my worry that the current move in many stock markets around the world is not based on fundamental strength.

	<a data-mce-href="http://www.investmentcontrarians.com/files/2013/12/EEM-iShares-MSCI-Emerging-Markets-Chart.jpg" href="http://www.investmentcontrarians.com/files/2013/12/EEM-iShares-MSCI-Emerging-Markets-Chart.jpg" target="_blank"><img alt="EEM iShares MSCI Emerging Markets Chart" data-mce-src="http://www.investmentcontrarians.com/files/2013/12/EEM-iShares-MSCI-Emerging-Markets-Chart.jpg" height="254" src="http://www.investmentcontrarians.com/files/2013/12/EEM-iShares-MSCI-Emerging-Markets-Chart.jpg" title="EEM iShares MSCI Emerging Markets Chart" width="570" /></a>

	Chart courtesy of www.StockCharts.com

	More specific to the emerging markets, this chart shows the iShares Emerging Markets ETF against an inverse ETF, the Direxion Daily Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>).

	As you can see, the inverse ETF moves in the opposite direction of the ETFs that mimics the emerging markets. A note of caution: the inverse ETF is three-times leveraged, which means it can be extremely volatile and should not be a long-term holding. Highly leveraged ETFs will erode over time, so they should only be used as a hedge over a short holding period.

	I continue to favor an investment strategy that reallocates capital away from sectors that are not showing fundamental strength. Emerging markets, in my opinion, still remain fragile; if I had exposure to that sector, I would certainly look to add a very small portion of capital into an instrument that can hedge my risks.

	The big picture is that while all stock markets keep moving higher, executives at companies such as Unilever remain extremely cautious and continue to wave warning flags. At some point, fundamentals will matter and having an investment strategy that is diversified and partially hedged will pay off over the long run.

	This article <a data-mce-href="http://www.investmentcontrarians.com/recession/caution-emerging-markets-show-warning-signs/3413/" href="http://www.investmentcontrarians.com/recession/caution-emerging-markets-show-warning-signs/3413/" target="_blank">If You Are Thinking of Investing in Emerging Markets, Here&rsquo;s What You Need to Know</a> was originally published at <a data-mce-href="http://www.investmentcontrarians.com/" href="http://www.investmentcontrarians.com/" target="_blank">Investment Contrarians</a>

If You Are Thinking of Investing in Emerging Markets, Here's What You Need to Know

Here is the ETF Professor's ETF Watch List for Thursday, September 26, 2013.

Give the iShares Silver Trust (NYSE: <a class="ticker" href="/stock/slv#NYSE">SLV</a>) a look.

The Direxion Daily Small Cap Bear 3X Shares (NYSE: <a class="ticker" href="/stock/tza#NYSE">TZA</a>) could be worth a trade.

The iShares Europe 350 (NYSE: <a class="ticker" href="/stock/iev#NYSE">IEV</a>) looks good.

Check in with the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>).

Emerging markets plays of the day: iShares MSCI Thailand ETF (NYSE: <a class="ticker" href="/stock/thd#NYSE">THD</a>), Direxion Daily Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>) and the iShares MSCI Malaysia ETF (NYSE: <a class="ticker" href="/stock/ewm#NYSE">EWM</a>).

Forex play of the day: ProShares UltraShort Yen (NYSE: <a class="ticker" href="/stock/ycs#NYSE">YCS</a>).

Bond play of the day: PowerShares Senior Loan Portfolio (NYSE: <a class="ticker" href="/stock/bkln#NYSE">BKLN</a>).

New ETFs

Currency ETFs

Pre-Market Outlook

BKLN

iShares MSCI Thailand Investable Market Index Fund

ETFs to Watch September 26, 2013 (BKLN, SDY, TZA)

Big winners (up at least 5%): ProShares UltraShort Silver (NYSE: <a class="ticker" href="/stock/zsl#NYSE">ZSL</a>), Direxion Daily Gold Miners Bear 3X Shares (NYSE: <a class="ticker" href="/stock/dust#NYSE">DUST</a>), Direxion Daily Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>) and the PowerShares DB Commodity Short ETN (NYSE: <a class="ticker" href="/stock/ddp#NYSE">DDP</a>).

	Big losers (down at least 5%): Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>), Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>), Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>), iShares Silver Trust (NYSE: <a class="ticker" href="/stock/slv#NYSE">SLV</a>), Global X Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>) and the Direxion Daily Latin America Bull 3X Shares (NYSE: <a class="ticker" href="/stock/lbj#NYSE">LBJ</a>).

	Unusual volume (at least 5X ADV): Market Vectors Gaming ETF (NYSE: <a class="ticker" href="/stock/bjk#NYSE">BJK</a>), Guggenheim Timber ETF (NYSE: <a class="ticker" href="/stock/cut#NYSE">CUT</a>), WisdomTree Global Natural Resources ETF (NYSE: <a class="ticker" href="/stock/gnat#NYSE">GNAT</a>), iShares MSCI Global Gold Miners (NYSE: <a class="ticker" href="/stock/ring#NYSE">RING</a>) and the Global X Social Media Index ETF (NASDAQ: <a class="ticker" href="/stock/socl#NASDAQ">SOCL</a>).

	Must reads of the day:

	Bloomberg: Get ready for <a href="http://www.bloomberg.com/news/2013-09-20/house-passes-spending-bill-seeking-to-stop-health-law.html">Congress to muck up the markets</a> again.

	The Economist: A smart look <a href="http://www.economist.com/news/economic-and-financial-indicators/21586611-world-gdp">look at global GDP growth</a>.

	Barron's: Gold miners <a href="http://blogs.barrons.com/focusonfunds/2013/09/20/the-gold-miner-etf-just-reversed-its-no-taper-surge/">wave good-bye to no tapering gains</a>.

	ETF Trends: Now this, unfortunately, <a href="http://www.etftrends.com/2013/09/a-splash-of-kardashian-for-em-bond-etfs/">Kardashian bonds</a>.

	Cheapest of <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3930492/super-cheap-emerging-markets-etfs">the cheap emerging markets</a>.

	Check out these <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/09/3930676/nifty-new-global-dividend-etfs">new dividend ETFs</a>.

	Don't forget to follow me on Twitter <a href="https://twitter.com/ETFProfessor1">@ETFProfessor1</a>.

Barron's

After-Hours Center

DUST

Market Vectors ETF Trust Market Vectors Gold Miners

GDXJ

GNAT

RING

SOCL

Benzinga's Mandatory ETF Reading for September 20, 2013

On the back of some slack economic data, surging U.S. oil inventories and speculation that the Federal Reserve could end its bond-buying program as soon as this summer, U.S. stocks plunged Wednesday. The tumble came just a day after the S&amp;P 500 touched a new record high.

	One day of glum market action does not necessarily mean the start of an imminent, savage downturn. Still, Wednesday's action in select inverse ETFs may be a sign that more downside is on the way. At least for countries and sectors these ETFs track.

	At this point, it should go without saying that leveraged ETFs, both the bullish and bearish plays, are short-term instruments. Knowing that, the plethora of critics this asset class has might be apt to say these ETFs are not the best harbingers of things to come. That point can be argued, but in the cases of select bearish funds, Wednesday's action was merely the extension of recent trends and those trends should not be ignored.

	Bad Emerging Markets Continue to be Bad 
	Well-documented have been <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3452210/slide-in-em-etf-exposes-country-weight-flaws">the struggles of the largest emerging markets, BRIC in particular, this year</a>. That was again the case on Wednesday.

	Start with the ProShares UltraShort Brazil (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>). That double leveraged bearish play on sagging Brazilian equities, was up almost one percent Wednesday. Naysayers will point the below average volume and that is a fair argument.

	On a related note, China bulls will not like the fact that the ProShares UltraShort FTSE China 25 (NYSE: <a class="ticker" href="/stock/fxp#NYSE">FXP</a>) gained 3.7 percent on more than double the average daily turnover. FXP also broke downtrend line resistance and could make a run to its 200-day moving average in the coming days.

	The Direxion Daily Russia Bear 3X Shares (NYSE: <a class="ticker" href="/stock/russ#NYSE">RUSS</a>) gained more than six percent on more than double its average daily volume while the Direxion Daily Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>) added over three percent, also on better than double the normal trade.

	Strong volume across EDZ, FXP and RUSS is not a good sign for BRIC bulls.

	Energy Weakens 
	Name a major energy ETF and chances are it closed in the red Wednesday. The Energy Select SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) and the Vanguard Energy ETF (NYSE: <a class="ticker" href="/stock/vde#NYSE">VDE</a>) were both down more than 1.6 percent while the Market Vectors Oil Services ETF (NYSE: <a class="ticker" href="/stock/oih#NYSE">OIH</a>) dropped 2.1 percent on volume that was about 25 percent higher than usual.

	Again, just one day of price action is being referred to here, but energy has been one of the only higher beta sectors to show any leadership this year in what has <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3465273/low-vol-etf-inflows-underscore-rallys-risk-off-nature">predominantly been a low beta rally at the sector level</a>.

	Cause for concern? Maybe. The ProShares UltraShort Oil &amp; Gas (NYSE: <a class="ticker" href="/stock/dug#NYSE">DUG</a>) gained 3.3 percent on volume that was about 80 percent higher than usual.

	The Golden Goose May be Cooked 
	It has been said that gold is a safe-haven investment. Lately, that has not been the case and it now looks like the SPDR Gold Shares (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) and related ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3469106/inverse-etfs-for-april-showers">are flirting with technical disaster</a>. GLD lost 1.1 percent Wednesday on volume that was nearly 50 percent above the daily average.

	On the other hand, the PowerShares DB Gold Double Short ETN (NYSE: <a class="ticker" href="/stock/dzz#NYSE">DZZ</a>) added 2.1 percent on volume that roughly 25 percent above normal. Things are far worse for the miners. The Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) plunged 4.5 percent on volume that 2.6 times above normal. The Direxion Daily Gold Miners Bull 3X Shares (NYSE: <a class="ticker" href="/stock/nugt#NYSE">NUGT</a>) tumbled nearly 14 percent to close at $20.52. Following a reverse split, NUGT opened for trading Tuesday at just over $26.

	The Direxion Daily Gold Miners Bear 3X Shares (NYSE: <a class="ticker" href="/stock/dust#NYSE">DUST</a>) loves all this. On better than double its average turnover, DUST jumped 13.4 percent Wednesday.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Futures

Technicals

Commodities

Events

NUGT

Interesting Wednesday Action in Inverse ETFs

Here is the ETF Professor's ETF Watch List for Monday, March 18, 2013.

The ProShares UltraShort MSCI Europe (NYSE: <a class="ticker" href="/stock/epv#NYSE">EPV</a>) should be in play.

Give the ProShares UltraShort Oil &amp; Gas (NYSE: <a class="ticker" href="/stock/dug#NYSE">DUG</a>) a look.

Keep an eye on the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>).

The iShares Gold Trust (NYSE: <a class="ticker" href="/stock/iau#NYSE">IAU</a>) could bounce.

Emerging markets plays of the day: Direxion Daily Emerging Markets Daily 3X Bear Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>), ProShares UltraShort Brazil (NYSE: <a class="ticker" href="/stock/bzq#NYSE">BZQ</a>) and the iShares MSCI Turkey Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/tur#NYSE">TUR</a>).

Forex play of the day: ProShares UltraShort Euro (NYSE: <a class="ticker" href="/stock/euo#NYSE">EUO</a>).

Bond play of the day: iShares Barclays 20+ Year Treasury Bond Fund (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>).

iShares Trust Barclays 20+ Year Treasury Bond Fund

ETFs to Watch March 18, 2013 (EPV, IAU, TLT)

U.S. stocks ended last week on a slightly downbeat note, but Friday's glum action was a mere bump on the road of more weekly gains for the major U.S. indexes. Investors might want to cherish the memory of those gains, at least for the next day or two, because Monday's open could be nasty one.

	Once a gain, a small Eurozone member is seen roiling global equity markets as Cyprus, an island nation of just 1 million citizens, is flirting with a run on its banks. That is because Cyprus' parliament, on Sunday, delayed a vote on taxing bank deposits at a rate of 6.75 percent for deposits under $131,000 and 9.9 percent for deposits over that amount.

	Those are the conditions of a bailout program agreed to buy the sixteen other Eurozone nations and the International Monetary Fund. If Cyprus does not comply, it could go bankrupt and be sent packing from the Eurozone. And there is one obvious reason why stocks and other risky assets could struggle today. With that in mind, here are a few of the ETFs to keep an eye on in the week ahead.

	ProShares UltraShort MSCI Europe (NYSE: <a class="ticker" href="/stock/epv#NYSE">EPV</a>) 
	One reason Cyprus' banks are ailing is over $5 billion in bad bets on Greek debt. Neither Cyprus, nor Greece command significant percentages in the Vanguard MSCI Europe ETF (NYSE: <a class="ticker" href="/stock/vgk#NYSE">VGK</a>), the ETF that the ProShares UltraShort MSCI Europe is double-leveraged inverse equivalent of.

	That does not matter because Sunday's Asian session, which included a plunging euro, a soaring U.S. dollar and tumbling S&amp;P 500 futures, indicates even tiny Cyprus could be a significant near-term hurdle for the bulls. EPV looked liked it had potential to deliver for traders in late February on the <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3364638/this-leveraged-play-could-be-etf-of-the-week">back of the Italian election results</a>, but upside did not materialize in impressive fashion.

	Still, EPV is in an ideal situation to move higher this week. Two areas to watch: Resistance at $25 for EPV and support at $49 for VGK. Breaks of those price levels could mean a very tough week in which to be long.

	iShares Gold Trust (NYSE: <a class="ticker" href="/stock/iau#NYSE">IAU</a>) 
	Gold's trials and tribulations to start 2013 are well-documented. The bears love it and the gold bugs are getting pensive and worrying that bullion's 12-year bull run could be at an end. Last week, Barclays slashed its gold price target to $1,646 per ounce from $1,778, <a>saying the yellow metal lacks catalysts</a>.

	Cyprus certainly qualifies as a catalyst. Gold rising above $1,600 per ounce for part of Monday's Asian session proves as much. Not to mention, traders appear to be doing some dip buying in gold. Hedge funds and other market participants boosted net long exposure to gold across 18 U.S. futures and options in the week ended March 12 by 30 percent to 528,680 contracts, the biggest gain since July and up from a four-year low the previous week, <a href="http://www.bloomberg.com/news/2013-03-17/bullish-bets-jump-most-since-july-as-gold-rebounds-commodities.html">Bloomberg reported, citing U.S. Commodity Futures Trading Commission data.</a> IAU is a buy above $15.20.

Direxion Daily Emerging Markets 3X Bear Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>) 
	If there is any good news about the broader emerging markets universe this year, particularly the BRIC quartet, is that <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3391403/good-news-emerging-markets-etfs-are-cheap">valuations are cheap and perhaps attractive</a>. Thanks to Cyprus it would cheap is about to turn to "cheaper" given the proclivity of emerging markets equities to be adversely impacted by goings on in the eurozone.

	As for EDZ, here is why this triple-leveraged play makes this week's list. It is the inverse equivalent of the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>), an ETF <a href="http://www.finviz.com/quote.ashx?t=eem&amp;ty=c&amp;ta=1&amp;p=d">with a concerning chart</a>. If EEM drops another four percent, it should catch support at its 200-day moving average. EDZ holders will love that because that likely means a gain of 11 or 12 percent.

	That could happen this week. After all, EDZ jumped almost eight last week alone.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Previews

A Look Ahead: This Week's ETFs to Watch

Here is the ETF Professor's ETF Watch List for Wednesday, March 13, 2013.

The First Trust ISE-Revere Natural Gas Index Fund (NYSE: <a class="ticker" href="/stock/fcg#NYSE">FCG</a>) is looking interesting.

Give the First Trust Financials AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxo#NYSE">FXO</a>).

Hedge long bets with the ProShares UltraShort S&amp;P500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>).

Emerging markets plays of the day: Direxion Daily Emerging Markets Bear 3X Shares (NYSE: <a class="ticker" href="/stock/edz#NYSE">EDZ</a>), Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>) and the WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>).

Forex play of the day: PowerShares DB US Dollar Index Bullish (NYSE: <a class="ticker" href="/stock/uup#NYSE">UUP</a>).

Bond play of the day: Vanguard Total Bond Market ETF (NYSE: <a class="ticker" href="/stock/bnd#NYSE">BND</a>).