As the one-week mark of the Q3 earnings season passed, seven of the regional banks which JPMorgan covers disclosed their results, with five of them beating analysts' bottom-line expectations. As Benzinga's Piero Cingari mentioned, the "primary driver behind these beats was stronger-than-expected net interest margins (NIM) and net interest income (NII)."

What's more, several key metrics for U.S. banks boded well for the broader economy. "Average deposits increased at a 7% annualized rate, while average loans grew by 2% annually. On a period-end basis, deposits rose at an even stronger 11% annualized pace, and loans increased by 3% annually. Importantly, NII expanded at a robust 12% annualized rate," wrote Cingari.

It's important to note, though, that DPST is wildly choppy. In addition, it's critical that investors do not hold leveraged ETFs for periods lasting longer than one day. Otherwise, the daily compounding of volatility could lead to gradual value erosion.

The DPST Chart: Although the DPST fund got off to a rocky start this year, it found its footing in the back half, gaining almost 70% in the trailing six months.

• The 3X ETF popped over 8% in late-afternoon trading Monday, buoyed by the Dow Jones and improved sentiment for the economy.
• Since approximately mid-June, DPST has been charting a series of higher lows, further underscoring the net-positive fundamental outlook.
• However, traders should keep an eye on volume levels, which generally have been fading since July.

Featured photo by 3D Animation Production Company from Pixabay.