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Last week was downbeat for Wall Street thanks to rising virus cases and reversing of economic reopening by some key U.S. states. The U.S. stimulus package CARES Act worth $2.2-trillion is about to expire by July end and policymakers began discussion on further package during the week. The S&P 500, the Dow Jones and the Nasdaq Composite lost about 0.28%, 0.76% and 1.33%, respectively, during the period.
Some tech stocks started losing their appeal probably due to overvaluation concerns. However, the ongoing earnings season is a mixed show. Against this backdrop, below we highlight a few winning leveraged ETF areas of past week.
Last week was all about a silver rally. Prices climbed to the highest level in nearly four years. Increase in investment demand, pick-up in industrial activity due to factory reopening after lockdowns, and investors’ appetite for alternatives to safe-haven asset gold (which is pretty pricey at the current level) led to the rally.
Unlike gold, silver has considerable presence in the industrial sector. About 50% of the metal’s total demand comes from industrial applications. So, the reopening of global economies is helping silver more than the yellow metal (read: Here's Why Silver Outshining Gold ETFs).
Growth in the global solar PV industry, likely rebound in global computer shipments, as well as new sources of demand for sensors used in IoT are providing a boost to silver demand. A raft of global stimulus, including the latest EU deal of borrowing 750 billion euros, aided the rally.
Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG - Free Report) – Up 16.1%
Gold grabbed the second position with miners being in the sweet spot. Great level of uncertainty leading to safe-haven demand, rising virus cases, a super-dovish Fed and still-cheaper oil prices (which is used as an input by gold miners) led to the rally.
Some upbeat banking earnings and hopes of further U.S. stimulus package after the successful passage of the EU stimulus bill worth 700 billion euro probably gave a life to this otherwise-suffering sector (read: Banking Earnings Decent in Q2: ETFs in Focus).
The U.S. housing market has been witnessing a streak of encouraging data lately. Existing home sales, which account for more than 90% of U.S. home sales, showed a 20.7% rise to a seasonally adjusted annual rate of 4.72 million units in June. It compares favorably with 3.91 million units observed in May (the lowest level since October 2010). Notably, the metric showed the highest gain since 1968 when NAR had begun tracking the series. The current low rate environment has given a big boost to the sector (read: Housing ETFs to Gain on Upbeat Sales Data Amid Coronavirus Crisis).
ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report) – Up 11.9%
Natural gas prices registered a nice stretch last week. Per FXempire.com, tropical storm Hanna formed in the Gulf of Mexico is on its way to the Texas coast. There are some natural gas installations which are likely to be disturbed by the storm, which in turn boosted natural gas prices.
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Top 5 Leveraged ETF Areas of Last Week
Last week was downbeat for Wall Street thanks to rising virus cases and reversing of economic reopening by some key U.S. states. The U.S. stimulus package CARES Act worth $2.2-trillion is about to expire by July end and policymakers began discussion on further package during the week. The S&P 500, the Dow Jones and the Nasdaq Composite lost about 0.28%, 0.76% and 1.33%, respectively, during the period.
Some tech stocks started losing their appeal probably due to overvaluation concerns. However, the ongoing earnings season is a mixed show. Against this backdrop, below we highlight a few winning leveraged ETF areas of past week.
ProShares Ultra Silver (AGQ - Free Report) – Up 34.3%
Last week was all about a silver rally. Prices climbed to the highest level in nearly four years. Increase in investment demand, pick-up in industrial activity due to factory reopening after lockdowns, and investors’ appetite for alternatives to safe-haven asset gold (which is pretty pricey at the current level) led to the rally.
Unlike gold, silver has considerable presence in the industrial sector. About 50% of the metal’s total demand comes from industrial applications. So, the reopening of global economies is helping silver more than the yellow metal (read: Here's Why Silver Outshining Gold ETFs).
Growth in the global solar PV industry, likely rebound in global computer shipments, as well as new sources of demand for sensors used in IoT are providing a boost to silver demand. A raft of global stimulus, including the latest EU deal of borrowing 750 billion euros, aided the rally.
Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG - Free Report) – Up 16.1%
Gold grabbed the second position with miners being in the sweet spot. Great level of uncertainty leading to safe-haven demand, rising virus cases, a super-dovish Fed and still-cheaper oil prices (which is used as an input by gold miners) led to the rally.
Direxion Daily Regional Banks Bull 3X Shares (DPST - Free Report) – Up 13.6%
Some upbeat banking earnings and hopes of further U.S. stimulus package after the successful passage of the EU stimulus bill worth 700 billion euro probably gave a life to this otherwise-suffering sector (read: Banking Earnings Decent in Q2: ETFs in Focus).
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL - Free Report) – Up 12.0%
The U.S. housing market has been witnessing a streak of encouraging data lately. Existing home sales, which account for more than 90% of U.S. home sales, showed a 20.7% rise to a seasonally adjusted annual rate of 4.72 million units in June. It compares favorably with 3.91 million units observed in May (the lowest level since October 2010). Notably, the metric showed the highest gain since 1968 when NAR had begun tracking the series. The current low rate environment has given a big boost to the sector (read: Housing ETFs to Gain on Upbeat Sales Data Amid Coronavirus Crisis).
ProShares Ultra Bloomberg Natural Gas (BOIL - Free Report) – Up 11.9%
Natural gas prices registered a nice stretch last week. Per FXempire.com, tropical storm Hanna formed in the Gulf of Mexico is on its way to the Texas coast. There are some natural gas installations which are likely to be disturbed by the storm, which in turn boosted natural gas prices.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>