Direxion Daily Russia Bear 3X ETF (RUSS)
By now we all have at least a limited awareness of the conflict currently underway in the Balkans, but just in case, let us provide a brief synopsis.
Ukrainian forces in the country’s eastern region have been clashing with militant separatists, even despite a recent cease-fire agreement. The separatists desire a return to Russian rule, and it appears that the group’s efforts have been aided by the Russian government. As a result, heavy economic sanctions have already been placed on Russia, and it has been said that more are being explored.
The RUSS ETF trades with an inverse relationship to the Russian economy, so it’s conceivable that while Russia struggles with the economic repercussions of the conflict in the Ukraine, we could potentially see a protracted rise in this fund.
As you can see on the snapshot below, already it is showing indications of a reversal on the chart, exhibiting many of the characteristics of a prime bottom-play. As we kick off a new trading week, RUSS will be one of our primary items of interest.
Notable Mention From Friday
If you recall, we included a side note at the end of Friday’s report wherein we ventured that a market reversal and downturn could lead us to some interesting opportunities $22 UVXY Calls. While the markets overall continued their upward momentum, those traders who were quick on the draw could still have made a substantial profit from those contracts before they saw a pullback.
The $22 Calls made a strong initial push right out of the gate, running rapidly from 36-.63, a 75% intraday spike.
As you can see from the snapshot of the actual trade data of one of our top traders, significant profits were there for the taking early, even if one didn’t catch the low. From an initial block of $1860, he was able to cash out at the high of day for a 34% return in less than a half hour, leaving him with nearly $2500!
Extended Watchlist:
RIGL, BLDP, GEVO, BIOC, OCN