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Wall Street was upbeat last week. The S&P 500 (up 0.8%), the Dow Jones (up 0.2%), the Nasdaq (up 1.2%) and the Russell 2000 (up 2.5%) were all in the positive territory. The optimism surrounding the likely Fed rate cuts in 2024 aided the rally in the market, barring some occasional dips.
Meanwhile, Wall Street has witnessed the Santa Claus rally. December kicked off on a positive note, with the S&P 500 showing nearly a 4% increase leading up to Friday's trading session. It's worth noting that the days encompassing the Christmas holidays tend to have a strong historical track record of positive market performance.
Looking back at 1988, the second day before Christmas, which happened to be yesterday this year, stood out as particularly bullish, with the S&P 500 registering gains more than 70% of the time over the past 35 years. Last Friday marked the beginning of the official Santa Claus Rally.
Against this backdrop, below, we highlight a few inverse/leveraged ETFs of last week.
ETFs in Focus
GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 28.6%
After an astounding 2023, bitcoin is expected to continue its bullish run in 2024. Bitcoin halving is scheduled for April 2024. There is growing optimism that the U.S. Securities and Exchange Commission will approve a spot Bitcoin ETF in early 2024.
Potential Fed rate cuts would favor cryptocurrency investing. Increased institutional adoption, as well as more rampant global adoption of cryptocurrency, is another tailwind. All these factors have probably boosted the Coinbase stock and the leveraged ETF (read: Bitcoin ETFs Set to Explode in 2024 After a Marvelous 2023).
Gold bullion ETF SPDR Gold Trust (GLD) was up 1.5% last week as the U.S. dollar ETF UUP was down by 0.7%. Chances of a dovish Fed going forward undermined the greenback and boosted gold prices. Gold miners act as leveraged plays of the underlying metal and hence rallied hard last week.
Alphabet Inc Class A (GOOGL - Free Report) shares gained 6.7% last week. Google and Alphabet CEO Sundar Pichai opened up about the 12,000-employee layoff (the biggest-ever downsizing in the history of the company) the tech giant had undertaken last year. Search giant Google is planning to reorganize a large part of its 30,000-strong ad sales unit as a result of the company's recent advances in artificial intelligence, according to a report by The Information, as quoted on Mint. If this happens, the move will result in big cost savings.
Direxion Daily Pharmaceutical & Medical Bull 3X Shares (PILL - Free Report) – Up 9.4%
There was a set of key news in the pharma field last week. Bristol Myers Squibb has agreed to buy Karuna Therapeutics for $14 billion in cash. Plus, fears of the rise of a new variant of Covid-19 in India and the United States probably boosted the biotech space altogether.
GraniteShares 1.5x Long Meta Daily ETF (FBL - Free Report) – Up 9.1%
Meta Platforms (META) shares gained 4.8% last week. Notably, Threads – which is a text-based social media platform from Meta that functions similarly to X and was launched in July – became the most popular app in Apple's U.S. app store, showing it is gaining traction, per Business Insider. Also, the new Meta platform recently became available in the EU, witnessing a surge in downloads.
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5 Best Inverse/Leveraged ETFs of Last Week
Wall Street was upbeat last week. The S&P 500 (up 0.8%), the Dow Jones (up 0.2%), the Nasdaq (up 1.2%) and the Russell 2000 (up 2.5%) were all in the positive territory. The optimism surrounding the likely Fed rate cuts in 2024 aided the rally in the market, barring some occasional dips.
Meanwhile, Wall Street has witnessed the Santa Claus rally. December kicked off on a positive note, with the S&P 500 showing nearly a 4% increase leading up to Friday's trading session. It's worth noting that the days encompassing the Christmas holidays tend to have a strong historical track record of positive market performance.
Looking back at 1988, the second day before Christmas, which happened to be yesterday this year, stood out as particularly bullish, with the S&P 500 registering gains more than 70% of the time over the past 35 years. Last Friday marked the beginning of the official Santa Claus Rally.
Against this backdrop, below, we highlight a few inverse/leveraged ETFs of last week.
ETFs in Focus
GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) – Up 28.6%
After an astounding 2023, bitcoin is expected to continue its bullish run in 2024. Bitcoin halving is scheduled for April 2024. There is growing optimism that the U.S. Securities and Exchange Commission will approve a spot Bitcoin ETF in early 2024.
Potential Fed rate cuts would favor cryptocurrency investing. Increased institutional adoption, as well as more rampant global adoption of cryptocurrency, is another tailwind. All these factors have probably boosted the Coinbase stock and the leveraged ETF (read: Bitcoin ETFs Set to Explode in 2024 After a Marvelous 2023).
MicroSectors Gold Miners 3X Leveraged ETN (GDXU - Free Report) – Up 10.2%
Gold bullion ETF SPDR Gold Trust (GLD) was up 1.5% last week as the U.S. dollar ETF UUP was down by 0.7%. Chances of a dovish Fed going forward undermined the greenback and boosted gold prices. Gold miners act as leveraged plays of the underlying metal and hence rallied hard last week.
Direxion Daily GOOGL Bull 1.5X Shares ETF (GGLL - Free Report) – Up 9.9%
Alphabet Inc Class A (GOOGL - Free Report) shares gained 6.7% last week. Google and Alphabet CEO Sundar Pichai opened up about the 12,000-employee layoff (the biggest-ever downsizing in the history of the company) the tech giant had undertaken last year. Search giant Google is planning to reorganize a large part of its 30,000-strong ad sales unit as a result of the company's recent advances in artificial intelligence, according to a report by The Information, as quoted on Mint. If this happens, the move will result in big cost savings.
Direxion Daily Pharmaceutical & Medical Bull 3X Shares (PILL - Free Report) – Up 9.4%
There was a set of key news in the pharma field last week. Bristol Myers Squibb has agreed to buy Karuna Therapeutics for $14 billion in cash. Plus, fears of the rise of a new variant of Covid-19 in India and the United States probably boosted the biotech space altogether.
GraniteShares 1.5x Long Meta Daily ETF (FBL - Free Report) – Up 9.1%
Meta Platforms (META) shares gained 4.8% last week. Notably, Threads – which is a text-based social media platform from Meta that functions similarly to X and was launched in July – became the most popular app in Apple's U.S. app store, showing it is gaining traction, per Business Insider. Also, the new Meta platform recently became available in the EU, witnessing a surge in downloads.