Direxion Daily FTSE China Bear 3x Shares (ARCA: YANG)

Direxion Daily FTSE China Bear 3x Shares (ARCA:YANG), Trade Ideas

Direxion Daily FTSE China Bear 3x Shares

Direxion’s YINN And YANG – Will Chinese Markets Move Up Or Down?

Markets

YANG

YINN

The Direxion Daily FTSE China Bull 3X Shares (NYSEARCA: YINN) seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.

Direxion&#39;s YINN And YANG – Will Chinese Markets Move Up Or Down?

Asia

Why China Probably Won&#39;t Invade Taiwan--Plus, A Hedged Bet Against Chinese Stocks.

Why China Might Take Taiwan Soon

Over the weekend, Sri Lankan geopolitical blogger Dhanuka Dickwella offered an interesting argument for why China might invade Taiwan as early as this winter. I’ve posted it in full below. Before that, a quick follow up on a bearish Chinese ETF included in a portfolio I presented here last week.

What Comes Next In China--Why One Analyst Says China May Try To Take Taiwan As Soon As This Winter

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The Direxion Daily FTSE China Bull 3X Shares (NYSEARCA: YINN) seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.
The Direxion Daily FTSE China Bear 3X Shares (NYSEARCA: YANG) similarly seeks to magnify returns on the performance of the FTSE China 50 Index, but this time by seeking daily investment results of 300% of the inverse of the index&rsquo;s performance, before fees and expenses.
Consider trading these funds for the ability to potentially magnify returns based on the performance of that index &ndash; whether positive or negative.
The Chinese economy is the second largest economy in the world when ranked by nominal GDP and the largest when ranked by purchasing power parity. Home to some of the world&rsquo;s largest companies, China may be an attractive market for traders seeking to diversify their trades.
Weighted heavily in the consumer and financial sectors, the FTSE China 50 index is made up of the top 50 Chinese companies trading on the Hong Kong Stock Exchange in terms of size and liquidity. So the Direxion Daily FTSE China Bull and Bear 3x Shares provide daily exposure to Chinese giants like Tencent Holdings, Alibaba Group, Meituan, JD.com, China Construction Bank, Industrial Commerce Bank China, Ping An, Baidu, Bank of China and Wuxi Biologics.
Watch the full interview here:
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Featured Photo by<a href="https://unsplash.com/es/@ly0ns?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Li Yang</a> on<a href="https://unsplash.com/s/photos/china?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a>.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Direxion's YINN And YANG – Will Chinese Markets Move Up Or Down?

News

AAPL

AMZN

BABA

COIN

NVDA

TSLA

Top Ten Wall Street Bets Mentions for Monday November 28, 2022: TSLA, AAPL, BABA, AMZN, AMS, NVDA, YANG, COIN, GME, XOM

Direxion Daily FTSE&nbsp;China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) are&nbsp;ETFs tracking the direct or inverse results of the FTSE China 50 Index by 300% and&nbsp;have experienced high levels of volatility over recent weeks.
The increasing volatility began on Feb. 23 following Russia&rsquo;s invasion of Ukraine, which stirred fear China could become at least partly involved in the crisis.
The Asian country has also been battling with a <a href="https://www.cbsnews.com/news/china-covid-lockdown-changchu-9-million-residents/">new wave</a> of the omicron COVID-19 virus, and on March 11 Chinese officials announced a lockdown for the city of Changchun, which has a population of nine&nbsp;million people.
The latest news has only accelerated the decline of Chinese stocks, which have plummeted over the past many months amid regulatory fears amid China&rsquo;s crackdown on its native companies. Alibaba Group Holdings&nbsp;Ltd - ADR&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), the second-largest <a href="https://research.ftserussell.com/Analytics/FactSheets/temp/b0db0e50-1447-42d8-a48c-291f4e9fa84a.pdf">holding</a> in the FTSE China 50 Index with a weighting of 8.48%, plunged about 77% from Oct. 27, 2020, all-time high of $319.32 to reach a multi-year low of $73.28 on March 15.
On March 16, YINN and YANG reversed course after The China Securities Regulatory Commission <a href="https://www.reuters.com/business/china-securities-regulator-push-forward-overseas-listing-rules-2022-03-16/">said it would</a> work with U.S. regulators to find a solution over audit supervision, which has put some China-based stocks in risk of being delisted from U.S. stock exchanges.
YINN, a triple leveraged fund that is designed to outperform the China 50 Index by three times, plummeted more than&nbsp;63% between Feb. 23 and March 15 before beginning to rebound. YANG, which is inversely correlated to the FTSE China 50 and delivers three times its decline, soared 144% higher over that same time period before suffering a massive sell-off.
The massive amount of volatility in the funds appears to have somewhat subdued over the past few trading days, although on Friday, YINN was soaring about 17% higher and YANG was falling about 16% lower. 
Over the coming trading days, it is likely that both funds will enter into consolidation patterns before continuing in the trends YINN and YANG have developed into on their charts.
It should be noted&nbsp;that events affecting the general markets, negative or positive reactions to earnings prints and news headlines can quickly invalidate patterns and breakouts. As the saying goes, &quot;The trend is your friend until it isn&#39;t,&quot; and any trader in a position should have a clear stop set in place and manage their risk versus reward.
See Also:&nbsp;<a href="https://www.benzinga.com/government/22/03/26159944/heres-why-alibaba-and-other-chinese-stocks-are-trading-higher-premarket">Here&#39;s Why Alibaba And Other Chinese Stocks Are Trading Higher Premarket</a>
The YINN Chart: In YINN&rsquo;s decline, the fund formed into a falling channel between two parallel trendlines and on March 16, YINN gapped up about 25% on the open, which represented a bullish break from the channel. A falling channel is considered to be a bearish pattern until a stock or ETF breaks up from the upper descending trendline of the pattern on higher-than-average volume.
<ul>
<li>YINN consolidated on Thursday with a bullish inside bar pattern and on Friday, the fund broke up bullishly from the pattern.</li>
<li>The fund may be forming an uptrend but will need to print a higher low above $2.80 in order to confirm the pattern. Bullish traders may choose to take a position when the higher low is confirmed by a reversal candlestick such as a doji or hammer.</li>
<li>YINN is trading on higher-than-average volume again on Friday, which indicates there is a high level of bullish interest in the fund.</li>
<li>There is resistance above at $6.31 and $7.75 and support below at $4.45 and $2.80.</li>
</ul>
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
<img alt="yinn_mar_18.png" src="https://www.benzinga.com/files/u278075/yinn_mar_18.png" style="height:427px; width:760px" />
The YANG Chart: After reaching a 52-week high of 48.44 on March 15, YANG gapped down more than 30% the following day and has continued to plummet since, plunging an additional 48% to trade below the $15 level.
<ul>
<li>Like YINN, YANG has had much higher-than-average volume but in this case the volume is bearish and indicates more downside may be in the cards.</li>
<li>The most likely scenario is that YANG will form an inside bar on Monday because the massive drop has pushed the relative strength index down to the 38% level.</li>
<li>The fund will eventually need to bounce up to form a lower high on the daily chart, and traders who are bearish on the FTSE China 50 Index may choose to take a position in YANG on confirmation of the lower high.</li>
<li>YANG has resistance above at $15.70 and $17.26 and support below at $12.68 and $10.35.</li>
</ul>
<img alt="yang_mar_18.png" src="https://www.benzinga.com/files/u278075/yang_mar_18.png" style="height:427px; width:760px" />

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ETFs

YINN, YANG Pushed To Extremes As Chinese Stocks Rebound: How To Play The Funds

SmileDirectClub Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdc#NYSE">SDC</a>) continues to be the most-discussed stock on Reddit&rsquo;s r/WallStreetBets forum as of Tuesday night, while Lucid Group Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lcid#NASDAQ">LCID</a>), IronNet Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/irnt#NYSE">IRNT</a>), GameStop Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gme#NYSE">GME</a>) and Upstart Holdings Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/upst#NASDAQ">UPST</a>) are also seeing high interest.
What Happened: Exchange-traded fund SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) is seeing the highest interest on the forum with 835 mentions as at press time, followed by oral care company SmileDirectClub with 321 mentions, data from Quiver Quantitative showed.
While Tesla Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) has fallen out of the top-10 stocks on the forum, rival electric vehicle startup Lucid is&nbsp;in the third spot&nbsp;having attracted 291 mentions in 24 hours. Cybersecurity company IronNet is&nbsp;at the fourth position, with&nbsp;157 mentions.
Apart from videogame retailer GameStop and consumer lending platform Upstart, the other stocks trending on the forum include deep sea mining starup TMC the metals company Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tmc#NASDAQ">TMC</a>), exchange traded fund Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>), movie theatre chain AMC Entertainment Holdings Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>) and Chinese e-commerce giant Alibaba Group Holding Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>).
See Also: <a href="https://www.benzinga.com/news/21/09/23038182/2-ways-rivian-might-have-big-initial-release-in-us-and-fight-off-competition">2 Ways Rivian Might Have Big Initial Release In US And Fight Off Competition</a>
Why It Matters: SmileDirectClub is seeing high interest on the forum after the company announced plans to launch in France in the fourth quarter of this year. About 32.6% of the company&rsquo;s float is held short, according to the latest data from Yahoo! Finance.
Shares of Lucid Group extended gains to a fifth straight day on Tuesday ahead of the company&#39;s Production Preview Week scheduled to begin on Sept. 27. Among other events during the week, guests will be able to observe the production processes for the Lucid Air luxury sedan at the company&rsquo;s factory in Arizona.
See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/21/09/22977560/why-lucid-group-stock-looks-like-its-starting-to-heat-up">Why Lucid Group Stock Looks Like It&#39;s Starting To Heat Up</a>
Upstart&rsquo;s shares touched a new 52-week high in intraday trading on Tuesday after WSFS Financial Corp. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wsfs#NASDAQ">WSFS</a>) said it has launched a digital personal loans product powered by Upstart.
Price Action: SPDR S&amp;P 500 ETF Trust&rsquo;s shares closed almost 0.1% lower in Tuesday&rsquo;s trading at $433.63 and further declined almost 0.3% in the after-hours session to $432.52.
&nbsp;SmileDirectClub&rsquo;s shares closed 0.3% lower in the regular trading session at $6.47 and further declined more than 2% in the after-hours session to $6.34.
Lucid Group&rsquo;s shares closed 11.4% higher in the regular trading session at $26.81, but declined 1.5% in the after-hours session to $26.81.
Read Next: <a href="https://www.benzinga.com/trading-ideas/long-ideas/21/09/23035096/cramer-beats-his-chest-at-gamestop-apes-but-the-stock-holds-strong">Cramer Beats His Chest At GameStop Apes But The Stock Holds Strong</a>
Photo: Courtesy of The Focal Project via <a href="https://www.flickr.com/photos/192004829@N02/50903497628">Flickr</a>

Tech

Media

IRNT

LCID

UPST

WSFS

Tesla Rival Lucid Joins Top WallStreetBets Interests Alongside IronNet, GameStop, AMC

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.
While the New York Stock Exchange had a hard time making up its mind regarding the listing fate of several of Chinese telecom companies, some index providers aren&#39;t playing around.
<h3>What Happened</h3>
On Thursday evening, FTSE Russell and MSCI, two of the largest sponsors of indexes used by issuers of exchange traded funds, announced the removal of some Chinese telecom companies from their benchmarks.
Add to that, next Monday, the &ldquo;Executive Order on Addressing the Threat from Securities Investments That Finance Communist Chinese Military Companies&rdquo; signed by President Trump goes into effect.
Combine those scenarios and it would be reasonable to expect these would be go-go days for the Direxion DailyFTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). In reality, it&#39;s YANG&#39;s bullish counterpart, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) that&#39;s looking appealing.
<h3>Why It&#39;s Important</h3>
YINN, which attempts to deliver <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs">triple the daily performance</a> of the FTSE China 50 Index, is higher by almost 7% over the past week, indicating an arguably surprising level of immunity to the China delisting controversy.
Still, there could be some reconfiguring in store for YINN&#39;s underlying index if more Chinese companies draw the ire of U.S. regulators and the major index providers.
&ldquo;Major international index providers completed their consultation processes and announced their plans,&rdquo; <a href="https://www.morningstar.com/articles/1017065/what-delisting-chinese-stocks-from-nyse-means-for-passive-funds">according to Morningstar</a>. &ldquo;The major benchmark providers will exclude the securities listed by the Office of Foreign Assets Control, or OFAC, from their equity and fixed-income indexes. Any index funds and exchange-traded funds whose benchmarks will be excluding the affected securities will follow suit.&rdquo;
Conversely, YINN could be in style for much of this year because analysts and asset allocators are bullish on emerging markets equities and its hard to extol that point of view while being on bearish on China &ndash; the largest developing economy.
<h3>What&#39;s Next</h3>
Given the fluidity of the listing situation, the bearish YANG may have its moments over the near-term, particularly if the scope of the aforementioned executive order is widened.
&ldquo;However, the interpretation of the executive order remains fluid. On Dec. 31, 2020, the New York Stock Exchange announced plans to delist the ADRs of three Chinese telecom companies,&rdquo; notes Morningstar. &ldquo;It put this on hold Jan. 4, 2021 but <a href="https://www.morningstar.com/articles/1017024">reverted to its original plan on Jan. 6</a>. The latest guidance from the OFAC, issued on Jan. 6, explicitly stated three NYSE-listed ADRs and subsidiaries of the military companies were subject to the executive order. As such, we expect that international index providers will make further announcements in the days to come.&rdquo;
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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Emerging Market ETFs

Despite All The Commotion, Delisting Controversy Not Taking Toll On Leveraged China ETF

The following was originally published on <a href="https://www.capitalwatch.com/article-6019-1.html">Capital Watch.</a> Some edits have been made
&quot;Will this be the day when investors sell-off and take some profits?&quot;
&quot;How long can the market remain divorced from all economic reality?&quot;
&quot;Will Spotify become the next Apple because it now offers podcasts?&quot;
&quot;And speaking of Apple, I know almost all of us said it was overvalued when the stock fell in March but now will it ever fall?
So say market experts&hellip;every single day.
While companies like Spotify (I bought at the recent dip) and other stay-at-home tech stocks will keep rising, the bulls will sell eventually. There is a tech bubble and it will burst, or at least deflate. To wit, Facebook Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) has barely budged despite advertisers leaving in droves at Zuckerberg&#39;s intransigence to demands by civil rights leaders insisting he curbs hate speech on his platform. Whether motivated by pure arrogance or a firm commitment to the principle of free speech on his platform, Zuckerberg&#39;s business sense will prevail in the end.
Facebook, Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), Netflix Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>), Alphabet Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>), and often included, Microsoft Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), will not see their F.A.A.N.G.s recede anytime soon. For all Warren Buffet&#39;s mistakes this year, Apple stock makes up more than half of his stock portfolio. I will continue to be long on Apple until there is a vast change in consumer behavior. Even when the world crumbles at our feet, we will take a video&nbsp;said&nbsp;Armageddon with&nbsp;our iPhone 23S.&nbsp;&nbsp;
Yes, buy Shopify Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shop#NYSE">SHOP</a>) and Spotify (SPOT) and yes, they will go down, but if they do, just sell fast or hold long-term. Spotify&#39;s foray into podcasting is not a joke and will help drive growth long-term.&nbsp;
UPS? Sure, buy it. FedEx&#39;s earnings should bode well for UPS, whose stock (UPS) should move upwards after it releases its own earnings on July 22.&nbsp;
China in a Bull Shop
As one Chinese retail investor in a Bloomberg piece said this week, &quot;I can&#39;t lose.&quot; Well, lose they did the last time the Chinese stock market raucously rallied in 2014, losing $5 trillion nearly overnight.
In the last couple of weeks, Chinese indexes added $1 trillion in value spurred on by individual retail investors leveraging like crazy after receiving encouragement from Beijing. Chinese regulators are already panicked over the frenzy, but Goldman Sachs says the bull has more room to run. And while there will be hills and valleys, I see a long-term bull market in China for the next few years.
You can buy an ETF, but I would just go to back to the BAT stocks and also add Vipshop Holdings Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vips#NYSE">VIPS</a>),&nbsp;Baozun Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bzun#NASDAQ">BZUN</a>),&nbsp;Tencent Holding (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>),&nbsp;New Oriental Education&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edu#NYSE">EDU</a>), Pinduoduo Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pdd#NASDAQ">PDD</a>), GSX Techedu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gsx#NASDAQ">GSX</a>)&nbsp;and leverage away. GSX is likely another lying Luckin, but who cares short term? I was late to the party but got &quot;in&quot; Monday at $66, &quot;out&quot; at $86.&nbsp;
You can also ride the dragon by betting on it or against it with the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and/or the&nbsp;Direxion Daily FTSE China Bull 3X Shares&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). The 3X Shares ETF seeks daily investment results, before fees and expenses, of 300%, or 300% of the&nbsp;inverse&nbsp;(or opposite), of the performance of the FTSE China 50 Index.&nbsp;
CapitalWatch Disclaimer
The opinions expressed in this article do not reflect the position of CapitalWatch or its journalists. The analyst has no business relationship with any company whose stock is mentioned in this article. Information provided is for educational purposes only and does not constitute financial, legal, or investment advice.

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Citigourp Global Markets 2% Protected Notes Linked To The Djia

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Your Week In Brief: Welcome To Groundhog Day.

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.
Imagine a world where Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) doesn&#39;t trade in the U.S. If some senators have their way, Chinese stocks would either be booted from U.S. exchanges or subject to significantly more scrutiny.
<h3>What Happened</h3>
On Wednesday, the Senate easily passed a bill that would forbid the likes of Alibaba, JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and scores of other Chinese companies from listing in the U.S. &ndash; a political push that could put the spotlight on leveraged exchange-traded funds such as the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>).
The bullish YINN attempts to deliver <a href="https://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, which contains Hong Kong-listed Chinese firms, several of which also trade in New York.
<h3>Why It&#39;s Important </h3>
It may seem far flung that Chinese companies will be barred from trading in the New York, but in the wake of the Luckin Coffee fiasco and increasing tensions between the world&#39;s two largest economies, the aforementioned Senate bill enjoys bipartisan support, a rarity on Capitol Hill.
&ldquo;If a company can&rsquo;t show that it is not under such control or the Public Company Accounting Oversight Board isn&rsquo;t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company&rsquo;s securities would be banned from the exchanges,&rdquo; <a href="https://www.bloomberg.com/news/articles/2020-05-20/senate-passes-bill-to-delist-chinese-companies-from-exchanges">according to Bloomberg</a>.
For now, markets don&#39;t appear convinced the bill will be signed into law as the bullish YINN gained 3.67% on Wednesday.
<h3>What&#39;s Next </h3>
While odds are currently long on the bill&#39;s passage, that could be a case of market&#39;s underestimating the legislation&#39;s practicality.
Not only does President Trump not shy away from heavy-handed stances against China, but the bill&#39;s authors &ndash; Sen. John Kennedy (R-LA) and Chris Van Hollen (D-MD) &ndash; are pragmatic in their approach. That could bode well for the bill&#39;s fate and YANG&#39;s play on its passage.
Kennedy said the aim isn&#39;t to start a rift with China. He merely wants Chinese public companies trading in the U.S. to be held to the same standards as their American counterparts.
&ldquo;Publicly listed companies should all be held to the same standards, and this bill makes common sense changes to level the playing field and give investors the transparency they need to make informed decisions,&rdquo; said Van Hollen in a press release.
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.

Politics

General

China Delisting Bill Could Put These Geared ETFs Into Gear

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.
Broadly speaking, emerging markets a mess this year and the coronavirus is just one reason. What&#39;s interesting about that scenario is that China &ndash; previously the epicenter of the virus &ndash; is outperforming broader developing world benchmarks.
<h3>What Happened</h3>
For example, the FTSE China 50 Index is performing 700 basis points less poorly this year than the MSCI Emerging Markets Index and while some bearish <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/05/16028572/3-bearish-etfs-to-profit-bullish-counterparts-with-elevated-short-interest">emerging markets ETFs look attractive</a>, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) could be worth a look for risk-tolerant, short term traders.
YINN tries to deliver <a href="http://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the aforementioned FTSE China 50 Index, a collection of the largest Chinese companies with Hong Kong listings.
Why It&#39;s Important 
While the following are longer-ranging factors, they do bode well for the near-term case for YINN: Chinese stocks, broadly speaking, are profitable and less expensive than their U.S. counterparts.
&ldquo;U.S. stocks may score higher on profitability than their Chinese counterparts, but they are also much more expensive,&rdquo; <a href="https://www.blackrockblog.com/2020/05/14/three-reasons-to-like-chinese-stocks/">according to BlackRock</a>. &ldquo;Chinese equities trading on the Shanghai exchange are valued at roughly 11x FY1 earnings. Companies listed on Hong Kong&rsquo;s exchange are trading at slightly above 8x earnings.&rdquo;
As YINN itself is recently showing, there&#39;s something to the &ldquo;first in, first out&rdquo; notion, meaning China was the first to be hit by the coronavirus and it&#39;s the first major economy to emerge from the virus&#39;s wrath.
&ldquo;As China was the first country to be devastated by the virus, it is also the first to start to recover. While investors should always be a bit skeptical of Chinese economic data, there are credible signs that their economy is slowly beginning to improve,&rdquo; adds BlackRock. &ldquo;Currently China is about the only place in the world where manufacturing surveys are positive, indicating a tepid expansion.&rdquo;
<h3>What&#39;s Next</h3>
As is always the case with any leveraged ETF, there&#39;s no free lunch with YINN. President Trump is none too pleased with China and is renewing trade deal threats. It&#39;s clear there&#39;s strain on US/China ties with the White House framing that stress around COVID-19.
&ldquo;What was originally a trade dispute with the United States has metastasized into a broader strategic conflict, a conflict now inflamed by questions around China&rsquo;s handling of the early stages of the crisis,&rdquo; said BlackRock.
Should tensions manifest into equity market downside, YINN&#39;s bearish cousin &ndash; the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) &ndash; becomes appealing.
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.

Why This Adventurous China ETF Is Worth A Look

Stocks were roiled Friday amid speculation that President Donald Trump is <a href="https://www.benzinga.com/news/19/09/14507636/chinese-stocks-slump-as-us-reportedly-weighs-options-to-block-investments">considering a plan</a> that would delist Chinese companies from major U.S. equity exchanges as part of a broader effort to limit U.S. access to Chinese investments.
Predictably, the headlines pressured a slew of U.S.-listed Chinese stocks. Shares of e-commerce giant Alibaba Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) slipped 5.15%, while rival JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) plunged nearly 6%.
Even PetroChina (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ptr#NYSE">PTR</a>), the oil giant with one of the longest-running U.S. listings of any Chinese company, lost more than 0.5%.&nbsp;
&ldquo;The deliberations come as the U.S. looks for additional levers of influence in trade talks, which resume <a href="https://www.cnbc.com/2019/09/26/china-trade-talks-set-to-resume-oct-10.html">on Oct. 10</a> in Washington,&rdquo; <a href="https://www.cnbc.com/2019/09/27/white-house-deliberates-block-on-all-us-investments-in-china.html">CNBC reported.</a>
&ldquo;Both countries slapped tariffs on billions of dollars worth of each other&rsquo;s goods. The discussions also come as the Chinese government is taking steps to increase foreign access to its markets.&rdquo;
At this point, it&#39;s speculation about whether Trump presses forward with the China delisting gambit, but if he does, the following bearish ETFs could be worth considering.
<h3>ProShares Short FTSE China 50</h3>
The ProShares Short FTSE China 50 (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yxi#NYSE">YXI</a>) is essentially the inverse equivalent of the iShares China Large-Cap ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fxi#NYSE">FXI</a>), one of the largest U.S.-listed China ETFs. On Friday, FXI fell 1.15%, while YXI rose by the same amount.
Since it&#39;s not a leveraged ETF, there aren&#39;t significant risks associated with holding YXI for a few days, but even if Chinese stocks fall on the delisting news, traders expecting big gains could be somewhat disappointed with YXI simply because the underlying index doesn&#39;t feature big weights to stocks like Alibaba and JD.
Chinese&nbsp;banks, which don&#39;t trade in the U.S., command nearly half the benchmark&#39;s weight.
<h3>Direxion Daily CSI 300 China A Share Bear 1X Shares</h3>
The Direxion Daily CSI 300 China A Share Bear 1X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chad#NYSE">CHAD</a>) is another inverse, though not leveraged, ETF. Friday&#39;s 1.33% jump on light volume positions the ETF to reclaim its 200-day moving average (5.11%).
The risk with CHAD, besides the possibility of a rally by Chinese stocks, is that the components in the CSI 300 Index trade on the mainland and many don&#39;t have U.S. listings &mdash; so vulnerability to U.S. delisting chatter could be limted.
<h3>Direxion Daily FTSE China Bear 3X Shares</h3>
Alright, now we&#39;re getting somewhere. The Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) surged 3.69% on more than double the average daily volume last Friday.
YANG tries to deliver <a href="http://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily inverse returns</a> of the FTSE China 50 Index, the same index YXI tracks.
For traders looking for rapid gains on the China delisting headlines, YANG could be the way to go.
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CHAD

CHAU

3 ETFs For The Latest China Mess

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

BIDU

Direxion Daily Developed Markets Bear 3x Shares

Direxion Daily Emerging Markets Bear 3x Shares

HSBC

RDS-A

RUSS

Global Outlook: Not Good

Geopolitical events and the related headlines are often the ideal catalysts for leveraged regional and single-country exchange traded funds. With the G-20 summit looming, the time could be right for the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>).
<h3>What Happened</h3>
President Donald Trump and Chinese President Xi Jinping will meet at the G-20 summit in Japan, a get together that is widely expected to bring much <a href="https://investorplace.com/2019/06/dow-jones-today-steady-but-some-patches-of-excitement/">anticipated relief</a> to the trade tensions between the world&#39;s two largest economies.
&ldquo;What remains far more crucial about this meeting is whether it helps steer the increasingly complex relationship back on a familiar course or whether it stirs winds and currents that sweep us further off into uncharted waters,&rdquo; <a href="https://www.barrons.com/articles/dow-jones-industrial-average-fell-as-trump-xi-meeting-may-be-more-than-trade-51561497144?mod=hp_BRIEF&amp;mod=article_inline" target="_blank">according to a recent note</a> by Christopher Smart of the Barings Investment Institute.
YANG attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, a popular gauge of Chinese large caps trading in Hong Kong.
<h3>Why It&#39;s Important </h3>
Ahead of the G-20 meeting, there have some signs traders are betting on a favorable outcome and are using the triple-leveraged YANG to make those bets.
On Tuesday, YANG saw inflows of $2.45 million, a total exceeded by just seven other Direxion leveraged ETFs, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>. That brought YANG&#39;s five-day inflow total to $4.80 million, good for seventh-best among Direxion&#39;s leveraged funds.
YANG&#39;s underlying index allocates over 45% of its weight to financial services stocks, but the fund has adequate leverage to some tariff-sensitive sectors, including communication services, consumer discretionary and technology.
<h3>What&#39;s Next</h3>
Given his penchant for harsh rhetoric aimed at China, President Trump could find the meeting with Xi not to be to his liking and talks deteriorate from there. Not saying that is going to happen, but traders can make that bet with YANG&#39;s bearish counterpart, the Direxion Daily FTSE China 3X Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>). YINN tries to deliver triple the daily inverse returns of the FTSE China 50 Index.
In what may prove to be a positive sign, there has not recently been much in the way of unusual activity in the bearish YINN, according to Direxion data. YINN is up nearly 2% this week.
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Events

Ahead Of G-20 Summit, Leveraged China ETF Stirs

These should be go-go days for leveraged China exchange-traded funds, and they are. As the U.S. and China, the world&#39;s two largest economies, continue grappling over trade, some traders are enjoying the ride offered by the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) or profiting from shorting the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>).
<h3>What Happened</h3>
The bullish YINN attempts to deliver triple the daily returns of the FTSE China 50 Index (TXIN0UNU), a widely followed gauge of Chinese large-cap stocks listed in Hong Kong; while the bearish YANG seeks results that correspond with<a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf"> triple the daily inverse performance</a> of that index.
In the current environment, it is not surprising that YINN is getting drubbed while YANG is surging. On Monday, YINN plunged 10 percent on above-average volume, extending its one-week loss to just over 21 percent. Conversely, the bearish YANG surged 10 percent on volume that was more than triple the daily average. YANG is up almost 24 percent over the past week.
<h3>Why It&#39;s Important </h3>
So with YINN tumbling and YANG soaring, it would be reasonable to expect that traders are chasing the latter while avoiding the former. Actually, data suggest the opposite is true. Over the trailing one-, five- and 10-day periods entering Monday, the bullish YINN was among the top 10 asset gatherers among <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">Direxion&#39;s leveraged ETFs</a>.
Last Friday, traders added $24 million to YINN, a total surpassed by just two other leveraged Direxion ETFs. That brought YINN&#39;s five- and 10-day inflows totals to $37.22 million and $82.87 million, respectively. Over those 10 days, YINN&#39;s inflows equaled 21.80 percent of the fund&#39;s total assets, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>.
On the other hand, traders are taking profits in the bearish YANG. Over the aforementioned one-, five- and 10-day periods, YANG was a top five offender in terms of assets lost among Direxion&#39;s leveraged ETFs. For the 10 days ending May 10, YANG saw departures of $20.72 million, the equivalent of 24.40 percent of the fund&#39;s total assets, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to Direxion data</a>.
<h3>What&#39;s Next </h3>
As for what is next, the longer Chinese stocks slide, it is possible traders will continue tempting fate with the bullish YINN. A rebound in Chinese stocks is not likely to be advertised, but when it happens, YINN could easily deliver double-digit intraday gains, but waiting for that day could prove risky for some traders.
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<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13689318/time-for-these-china-etfs-to-shine">Time For These China ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13689527/an-avenue-for-small-cap-promise-relatively-speaking">Consider This Small-Cap ETF</a>

Something Interesting Is Happening With Leveraged China ETFs

With trade tensions again running hot between the U.S. and China, stocks in both countries are being punished, but that scenario is putting the spotlight on a pair leveraged exchange-traded funds.
<h3>What Happened</h3>
Over the course of last week, the FTSE China 50 Index (TXIN0UNU), a widely followed gauge of large- and mega-cap Chinese stocks trading in Hong Kong, slid 5.72 percent, putting the index back into territory its hasn&#39;t seen since the end of January.
This decline comes following another escalation in the prolonged trade spat, as Beijing announced Monday its plan to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/05/13724953/china-will-raise-tariffs-on-60b-worth-of-us-goods-to-25-by-june-1">raise tariffs on $60 billion in U.S. goods</a> from 10 percent to 25 percent. This was in response to the Trump Administration&#39;s own declaration earlier in the month that it would increase tariffs on $200 billion in Chinese by that same margin.
Increased volatility in Chinese stocks and subsequent declines are proving to be a boon for the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>), which attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily inverse returns </a>of the FTSE China 50 Index.
<h3>Why It&#39;s Important </h3>
Entering Monday, YANG opened the day more 9 percent above its Friday close. As of that open, the ETF is up 30 percent on a month-to-date basis, making it the best performer among Direxion&#39;s leveraged bearish ETFs this month.
YANG&#39;s recent price action underscores an important point: when treated as the short-term instruments they are intended to be, leveraged ETFs can be the ideal avenues for active traders to profit from geopolitical headline risk, such as trade tensions.
Predictably, YANG&#39;s bullish counterpart, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>), has been getting decimated. YINN, which looks to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, lost 9.5 percent over the tumultuous trade weekend, bringing its month-to-date loss to over 25 percent and making the fund one of the worst-performing Direxion leveraged bullish funds to start May.
<h3>What&#39;s Next </h3>
As for what&#39;s next for YINN and YANG, data suggest some traders are positioning for a rebound in Chinese stocks. For the 10 days ended May 12, traders added $44.30 million to the bullish YINN, while the bearish YANG ranked among the top 10 Direxion bearish funds for outflows during that period.
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Time For These China ETFs To Shine

The third quarter earnings season is in full swing, with the busiest week of earnings upon us.
But what makes this earnings season unique is it has been accompanied by a bought of volatility that, to be frank, is rather unusual in this market. Not only has the VIX reached levels not seen since the end of March, but the market has officially given back all its 2018 gains.
While it&rsquo;s likely causing headaches for investors, this general market/earnings volatility is a dream for traders, especially ones who use daily trading strategies.
&ldquo;As short-term traders, you like when there&rsquo;s volatility because it gives you a chance to be more tactical in your trading,&rdquo; said Sylvia Jablonski, managing director of leveraged ETF provider Direxion ETFs. &ldquo;And it lets you use active trading tools like leveraged products to gain more exposure or hedge yourself.&rdquo;
Jablonski was quick to note that leveraged ETFs, like those at Direxion, are short-term vehicles only and shouldn&rsquo;t be held for more than a few days. But they can be used around news catalysts by traders making a call on a whether a stock or sector will go up or down.
Over the past few weeks, for instance, she said that traders had been active in the Direxion Daily FTSE China 3X Bull and Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) as the country&rsquo;s weakness has seemed to spearhead the sell-off in U.S. equities.
&ldquo;When we see a lot of traders coming in and out of funds like that, it&rsquo;s a signal that we should watch for volatility in the sector because a lot of traders are paying attention.&rdquo;
Jablonski also she&rsquo;s observed a lot of attention recently in the Direxion Daily Gold Miners Index Bull and Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>), which she said was not surprising considering gold&rsquo;s longstanding use as a hedge.
Looking ahead to next week&rsquo;s earnings slate, the Direxion Daily Technology 3X Bull and Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tecl#NYSE">TECL</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tecs#NYSE">TECS</a>) and Direxion Daily Energy Bull and Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) will likely experience more activity, as some of the top holdings in those funds report earnings.
In technology, Mastercard Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>) and Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), which report Tuesday and Thursday respectively, make up 24 percent of the Technology Select Sector Index tracked by TECS and TECL.
In energy, Exxon Mobil Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>), which are the two largest holdings and make up nearly 40 percent of the Energy Select Sector Index, will report Thursday afternoon. So traders can more volatility in those stocks and corresponding ETFs.
&ldquo;We typically see a lot of attention paid to our leveraged sector products in the run-up to earnings,&rdquo; said Jablonski. &ldquo;And that can even last a few days after a big earnings report depending on the strategy. I would expect that to be the case through the rest of this earnings season.
&nbsp;

Interview

DUST

NUGT

TECL

TECS

How The Market's Volatility Is Shaking Out In Leveraged ETFs

2018 has not been a kind year for international equity investors.
The whiplash has been especially bad for the Chinese markets, which were among the strongest in 2017. The FTSE China 50 Index, for example, rose 22 percent last year, but is down about 12 percent year-to-date. This is true for both US-listed stocks, and Chinese-listed ones.
In Hong Kong, internet conglomerate Tencent Holdings (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) is down 24 percent for the year, and financial stocks like Industrial and Commercial Bank of China (OTC: <a class="ticker" href="https://www.benzinga.com/stock/idcby#OTC">IDCBY</a>) and China Construction Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cichy#OTC">CICHY</a>) are down 15 and 12 percent respectively.
In the US, Baidu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) is down 10 percent for the year, while JD.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and Weibo Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wb#NASDAQ">WB</a>) are both down more than 35 percent. Even cream-of-the-crop Alibaba Group Holding Ltd (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) is trading at 15 percent deficit. And all of this while the S&amp;P 500 has risen nearly 8 percent to new all-time highs.
While investors have struggled, the constant back-and-forth between the US and China on trade policies and tariffs has created an opportunity for traders, at least according to Direxion, the largest provider of leveraged ETFs.
They told Benzinga that traffic to their China pages&mdash; which include the Direxion Daily CSI 300 China A Share Bear 1X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chad#NYSE">CHAD</a>), Direxion Daily CSI 300 China A Share Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>), Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>), Direxion Daily FTSE China Bear 3X (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>), and Daily CSI China Internet Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>) Shares&mdash;were all dramatically higher this summer.
Looking at fund flows, which can provide clues about how traders are using ETFs, every one of those ETFs except CWEB has seen large inflows since the beginning of June, according to ETF.com. While it&rsquo;s hard to discern too much from that because these funds are commonly used by institutional traders as part of larger strategies, it does tell us that money has been pouring into the funds (though we don&rsquo;t know whether it&rsquo;s on the long or short side).
Here is the flow data for this group since June 1:
<ul>
<li>Direxion Daily FTSE China Bull 3X Shares&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $67.10 million</li>
<li>Direxion Daily CSI 300 China A Share Bear 1X Shares&nbsp;&nbsp; &nbsp; &nbsp; $30.51 million</li>
<li>Direxion Daily CSI 300 China A Share Bull 2X Shares&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $21.06 million</li>
<li>Direxion Daily CSI China Internet Index Bull 2X Shares&nbsp;&nbsp;&nbsp; -$31.29 million</li>
<li>Direxion Daily FTSE China Bear 3X Shares&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; -$7.31 million</li>
</ul>
If this trend is to be believed, it appears likely these vehicles will continue to be popular at least through September or until the US and China come to a definitive agreement on trade deals.

Sector ETFs

CICHY

CWEB

IDCBY

As The US And China Duke It Out Over Trade, Traders Flock To Chinese Leveraged ETFs

Down more than 8 percent over the past month, the FTSE China 50 Index, one of the most widely followed gauges of Chinese stocks, is on a losing streak of more than two weeks, the likes of which the benchmark has not seen in several years.
Amid fears of an escalating trade war with the U.S., the FTSE China 50 Index is close to entering a bear market. The index resides about 10 percent below its 200-day moving average is nearly 20 percent below its 52-week high, both of which are bearish signals.
<h3>What Happened</h3>
Aggressive, short-term traders looking to establish bearish positions on large-cap Chinese stocks have some exchange traded funds (ETFs) to consider, including the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). YANG attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily inverse</a> returns of the FTSE China 50 Index.
For the week ended June 25, YANG is up more than 20 percent while the FTSE China 50 Index is sporting a loss of close 7 percent.
<h3>Why It&#39;s Important </h3>
&ldquo;A strengthening U.S. dollar has also contributed to those losses, but another reason is the rhetoric coming out of China&#39;s government after it said it is <a href="https://www.cnbc.com/2018/04/06/china-will-not-hesitate-with-major-response-to-new-tariffs-ministry-of-commerce.html">prepared</a> to respond with tariffs of its own,&rdquo; <a href="https://www.cnbc.com/2018/06/22/chinese-stocks-are-flirting-with-bear-market-territory-as-trade-worries-fester.html?__source=yahoo|finance|headline|story|&amp;par=yahoo&amp;yptr=yahoo">reports CNBC</a>.
Trade tensions are stoking interest in YANG. Last week, volume in the inverse leveraged China fund jumped almost 57 percent above its 20-day trailing average, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to Direxion data</a>. Only four of Direxion&#39;s leveraged ETFs saw larger volume spikes last week.
While leveraged bullish ETFs typically see larger inflows than their inverse counterparts, data suggest some traders are embracing YANG. Over the past month, YANG is seeing average daily inflows of more than $57,000,<a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf"> according to issuer data</a>.
<h3>What&#39;s Next</h3>
Volatility cuts both ways with leveraged ETFs. The FTSE China 50 Index has a three-year standard deviation of almost 21 percent, which is advantageous for YANG as Chinese stocks decline. As enticing as that metric is, it serves as a reminder that YANG is best used over the short-term because if Chinese stocks rally, inverse products will be punished.
Nearly half of the components in YANG&#39;s underlying index are financial services companies.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/06/11925603/where-value-stocks-are-working">Where Value Stocks Look Good.</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/06/11925555/a-less-volatile-basket-of-global-stocks">A Global Low Vol Idea.</a>

China Losing Streak Lures Traders To Leveraged 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;
Related Links:
&nbsp;
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/02/11114027/a-new-way-to-view-emerging-markets-bonds">A New Way To View EM Bonds.&nbsp;</a>
&nbsp;
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/02/11130867/a-nifty-idea-for-international-dividends">A Nifty Idea For International Dividends.&nbsp;</a>

Direxion Daily Emerging Markets Bull 3x Shares

Some Traders Saw The Emerging Markets Decline Coming

Emerging markets equities are setting a scintillating pace this year and China, the largest developing economy, is a big reason why. The largest China exchange traded fund listed in the U.S. is up more than 25 percent year-to-date.
&nbsp;
Some traders are recognizing the opportunity being offered by leveraged China ETFs, including the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="/stock/yinn#NYSE">YINN</a>). YINN attempts to deliver triple the daily performance of the widely followed FTSE China 50 Index.&nbsp;
&nbsp;
According to Direxion, the index consists of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange.&nbsp;Top holdings in the index include&nbsp;Tencent Holdings Ltd&nbsp;(OTC: <a class="ticker" href="/stock/tcehy#OTC">TCEHY</a>) (9.29 percent),&nbsp;China Construction Bank Corporation&nbsp;(OTC: <a class="ticker" href="/stock/cichy#OTC">CICHY</a>) (8.67 percent),&nbsp;China Mobile Ltd. (ADR)&nbsp;(NYSE: <a class="ticker" href="/stock/chl#NYSE">CHL</a>) (7.71 percent), and&nbsp;Industrial &amp; Commercial Bank of China&nbsp;(7 percent).
&nbsp;
Treading Carefully
&nbsp;
YINN&#39;s index is designed to deliver exposure to Chinese stocks that trade in Hong Kong, also known as H-shares. As the index description implies, many of those names are large- and mega-cap stocks. While China is one of the least volatile emerging markets on a historical basis, that does not mean traders should turn YINN into a long-term investment.
&nbsp;
Leveraged ETFs are inherently volatile and that is particularly of leveraged emerging markets single-country funds like YINN. YINN is best deployed as a short-term trade and can be used as a play on short-term, bullish themes in stocks such as Tencent&nbsp;or large-cap Chinese financial services firms.
&nbsp;
Tencent accounts for essentially all of the FTSE China 50 Index&#39;s technology weight. The index is not diverse at the sector level as financial services names account for half of the benchmark&#39;s weight.
&nbsp;
Increasing Interest
&nbsp;
With the FTSE China 50 Index up about 10.5 percent in the third quarter, traders have recently been paying increased attention to YINN. Over the past month, the triple-leveraged China ETF is averaging daily inflows of $160,000,<a href="http:// http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf"> according to Direxion data</a>.
&nbsp;
That is nearly double the daily inflows seen by YINN&#39;s bearish counterpart, the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="/stock/yang#NYSE">YANG</a>), over the same period. YANG attempts to deliver triple the daily inverse returns of the FTSE China 50 Index.
&nbsp;
Related Links:
&nbsp;
<a href="http:// https://www.benzinga.com/trading-ideas/long-ideas/17/09/10037102/dont-forget-this-europe-etf">Don&#39;t Forget This Europe ETF</a>.
&nbsp;
<a href="http:// https://www.benzinga.com/trading-ideas/long-ideas/17/09/10037103/an-ideal-anti-dollar-play">An Anti-Dollar Play.</a>

These Leveraged China ETFs Are Hot

Hedge fund Bridgewater Associates, founded by Ray Dalio, has recently received approval to start a business in Shanghai in China, according to a report on the <a href="http://www.wsj.com/articles/big-hedge-fund-bridgewater-approved-to-set-up-shanghai-subsidiary-1463384986">Wall Street Journal</a>.
The latest approval could raise the spirits of Bridgewater peers regarding China, where foreign-run hedge funds are rare. "[T]he Bridgewater approval is likely to encourage other firms to consider whether they should look at the China market," the Journal cited Z-Ben Advisors as commenting.
The report, citing a Chinese regulatory filing, said Dalio registered "Bridgewater (China) Investment Management Ltd. on March 7 with capital of 50 million yuan ($7.6 million)."
The Journal noted that Z-Ben Advisors, a Shanghai market research firm, pointed to the new registration in a report published on Monday.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/09/5847197/ray-dalio-china-is-going-to-be-fine-just-weaker">Ray Dalio: China Is Going To Be Fine, Just Weaker</a></bzrelatedlink>
The report also said that the Bridgewater received the approval for the name of its Chinese subsidiary in October, when China was still recovering from the stock-market crash and devaluation of the yuan.
"While there are concerns over credit quality in certain segments, China still does offer comparatively high-quality bonds and with decent yields," WSJ reported quoting Z-Ben.
As per its website, Westport, Connecticut-based Bridgewater manages about $150 billion in global investments for a wide array of institutional clients, including foreign governments and central banks, corporate and public pension funds.

Wall Street Journal

Hedge Funds

Contracts

Dalio's Bridgewater Associates Won Approval To Set Up Subsidiary In China

During Benzinga's Pre-Market Prep radio show, Axiom analyst Gordon Johnson shared his thoughts on China's dark future. These comments came after Johnson explained his startling $33.00 price target for Caterpillar Inc. (NYSE: <a class="ticker" href="/stock/cat#NYSE">CAT</a>) compared to where it was trading Friday afternoon at $71.10.
Despite commodity prices rising on China's reflation attempts, Johnson said he did not believe reflation would happen any time soon. "The reality is, what china has done is unprecedented, and they can't stimulate their way out of this," the Axiom analyst claimed.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/markets/emerging-markets/16/05/7960175/bloomberg-discusses-chinas-commodity-boom-of-2016">Bloomberg Discusses China's Commodity Boom Of 2016</a></bzrelatedlink>
<h3>Without Credit, Chinese Growth is Zero</h3>
Credit, China's main source of economic stimulation, was recently reported at "about half the amount of what the market perceived," stated Johnson. After referring to how China experienced GDP growth at about one-sixth the rate of its credit growth over the last three years, the analyst claimed Chinese growth cannot survive without continuous high amounts of borrowing. 
Now the majority of new debt is paying for the interest on China's existing debt rather than helping the economy, the Axiom analyst said.
Due to these concerns, Johnson claimed China would never fully recover to all-time high GDP growth levels until the nation reduces its heavy reliance on credit for stimulating growth.
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