TanyushaTech

Another unique characteristic is the use of derivative instruments. Exchange-listed futures and options on futures contracts, swaps and forward agreements, and listed options on individual securities and securities indexes are typically used. The investment advisor to the ETF will trade or invest in derivative instruments that they believe will deliver the performance stated by each ETF using directional, non-directional, arbitrage, hedging and other strategies.

The first unique characteristic of inverse ETFs is self-evident: Inverse ETFs seek investment results that correspond to the inverse (opposite) of the benchmark, or index, with which they are associated. For example, the ProShares Short QQQ ETF (PSQ) seeks results that correspond to the inverse of the performance of the Nasdaq 100 Index.1 If you anticipate a downturn in the Nasdaq 100, you would simply buy shares in PSQ.

The decline into December 2018 landed on the 200-month exponential moving average (EMA) and a rising lows trendline going back to 2009, raising the odds for a long-term bottom. The bounce into February 2019 has reached resistance at the April 2017 failed breakout above the 2014 high at $28.75, but the monthly stochastics oscillator is still ticking higher in a buy cycle that hasn't reached the overbought level. This conflict predicts two-sided action and a range-bound tape into the foreseeable future.

MGM Resorts shares posted an all-time high at $100.50 in October 2007 and turned lower into the first half of 2008. The decline accelerated during the economic collapse, dropping the stock to an all-time low at $1.81 in March 2009. It has gained ground in three buying impulses in the past decade, topping out in January 2018 just one point under the .382 Fibonacci retracement level of the 2007 into 2009 downtrend.

After bottoming out at $68.96 in late December, TECL's share price has rallied almost 80% to close at $123.56 on Feb. 27. Traders who want to capitalize on this strongly trending market should look for entry points on pullbacks to the 20-day simple moving average (SMA). If the fund's price continues higher, the SMA can then be used as a trailing stop to let profits run. Those who hold open positions should consider moving the stop to the breakeven point when the price nears $130 – an area where it may find resistance from the 200-day SMA.

Created in 2008, the Direxion Daily Technology Bull 3X ETF (TECL) seeks to provide three times the daily return of the Technology Select Sector Index. The benchmark index consists of U.S. large-cap technology names such as Apple Inc. (AAPL), Microsoft Corporation (MSFT) and Google parent company Alphabet Inc. (GOOGL). The fund's tight 0.08% average spread and daily turnover of more than 400,000 shares make it a suitable instrument for all forms of short-term trading. TECL, with assets under management (AUM) of $550.57 million and offering a 0.39% dividend yield, is up 45.76% year to date (YTD) as of Feb. 28, 2019. The ETF charges a 1.17% management fee, which has a minimal impact on short stays.