Direxion Daily Large Cap Bull 3X Shares (NYSE: BGU) — This exchange-traded fund (ETF) seeks to equal 300% of the daily performance of the Russell 1000 Index.
Since it tracks large-cap stocks, it has matched the pattern of other indices like the S&P 500 and Dow 30.
Yesterday, it performed a key reversal, much like the indices. Also like them, it triggered a buy signal from our proprietary Collins-Bollinger Reversal (CBR) indicator.
Initially, look for BGU to close the gap between $42.22 and $43.07. Then it could jump to the 50-day moving average at $45.75, and even to $50.
But keep in mind that is leveraged ETF, meaning it is a very volatile and speculative vehicle that is only appropriate for disciplined traders. It is not suitable for investors.
Check with your broker regarding stop-loss policies and margin requirements, which are usually 100%.
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