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Wall Street was upbeat last week. The S&P 500 (up 4.7%), the Dow Jones (up 4.9%), the Nasdaq Composite (up 5.2%) and the Russell 2000 (up 3.6%) gained last week. Upbeat earnings and the likelihood of slower Fed rate hikes from December boosted Wall Street last week.
In remarks at a meeting Friday, San Francisco Federal Reserve President Mary Daly said the U.S. central bank should avoid sending the economy into an "unforced downturn" and that it was time to consider easing the clip of hikes, as quoted on Yahoo Finance.
There are speculations in the market that Fed policymakers are likely to deliver another interest rate increase of 0.75% at their meeting Nov. 1-2 and but are expected to discuss the possibility of a smaller increase in December, the Yahoo Finance article noted.
Production levels at U.S. factories rose for the third straight month in September, driven by growth in manufacturing activity, which has been bolstered by higher demand for consumer goods. Steady growth in industrial production and output also indicates that the manufacturing sector still hasn’t crumbled in the face of soaring inflation (read: Continued Growth in Industrial Production: Buy Industrials ETFs).
Financial earnings came in upbeat. Netflix returned to growth and spread optimism after reporting solid third-quarter 2022 results after the closing bell on Tuesday. Johnson & Johnson continued with its long streak of earnings beat. It outpaced revenue estimates and raised its full-year revenue guidance. There were a few downbeat earnings too. Among the important ones, Tesla and Snap missed earnings (read: JNJ Beats on Q3 Earnings: ETFs in Focus).
Against this backdrop, below, we highlight the best inverse/leveraged ETFs of last week.
ETFs in Focus
Ultrashort Bloomberg Natural Gas ETF (KOLD - Free Report) – Up 48.3%
Natural gas futures fell last week, settling at a level not seen in seven months as extensive hotter-than-expected weather was seen continuing longer, limiting the cooling demand and the need for gas. The November Nymex natural gas futures contract closed out the week at $4.959/MMBtu, down 39.9 cents from Thursday’s close and off $1.494 from a week earlier (Oct. 14), as quoted on a source. Hence inverse leveraged natural gas ETG gained massively.
The global cannabis market is estimated to be valued at $27.7 billion in 2022 and is projected to reach $82.3 billion by 2027, recording a CAGR of 24.3% in terms of value, per ResearchAndMarkets.com, as quoted on benzinga. Plus, President Joe Biden recently pardoned all prior federal offenses of simple marijuana possession.
Oil prices gained as investor sentiment rose on news that China is considering an easing in the duration of quarantine for inbound visitors. Plus, OPEC+ output cut is also in place.
Bank of Montreal Microsectors Travel 3X Leverage (FLYU) – Up 27.9%
Travel stocks remained strong last week on cues of still-robust demand. Travel during the upcoming holiday season is expected to rebound greatly despite high inflation. After two years of travel bans, restrictions and lockdowns, Americans are set to hit the road. Thanksgiving and Christmas are normally two of the most traveled holidays in the fourth quarter (read: Time to Buy Leisure & Travel ETFs?).
Wall Street analysts are the most positive on the Defense sector, as quoted on investing.com. The latest geopolitical concerns, war between Russia and Ukraine and the resultant Western sanctions against Russia brightened the importance of the defense sector. Credit Suisse recently wrote “defense is likely to be a GDP+ growth industry for the remainder of the decade and forecast a 7.9% 8-yr CAGR for the DoD investment accounts.”
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Best Inverse/Leveraged ETFs of Last Week
Wall Street was upbeat last week. The S&P 500 (up 4.7%), the Dow Jones (up 4.9%), the Nasdaq Composite (up 5.2%) and the Russell 2000 (up 3.6%) gained last week. Upbeat earnings and the likelihood of slower Fed rate hikes from December boosted Wall Street last week.
In remarks at a meeting Friday, San Francisco Federal Reserve President Mary Daly said the U.S. central bank should avoid sending the economy into an "unforced downturn" and that it was time to consider easing the clip of hikes, as quoted on Yahoo Finance.
There are speculations in the market that Fed policymakers are likely to deliver another interest rate increase of 0.75% at their meeting Nov. 1-2 and but are expected to discuss the possibility of a smaller increase in December, the Yahoo Finance article noted.
Production levels at U.S. factories rose for the third straight month in September, driven by growth in manufacturing activity, which has been bolstered by higher demand for consumer goods. Steady growth in industrial production and output also indicates that the manufacturing sector still hasn’t crumbled in the face of soaring inflation (read: Continued Growth in Industrial Production: Buy Industrials ETFs).
Financial earnings came in upbeat. Netflix returned to growth and spread optimism after reporting solid third-quarter 2022 results after the closing bell on Tuesday. Johnson & Johnson continued with its long streak of earnings beat. It outpaced revenue estimates and raised its full-year revenue guidance. There were a few downbeat earnings too. Among the important ones, Tesla and Snap missed earnings (read: JNJ Beats on Q3 Earnings: ETFs in Focus).
Against this backdrop, below, we highlight the best inverse/leveraged ETFs of last week.
ETFs in Focus
Ultrashort Bloomberg Natural Gas ETF (KOLD - Free Report) – Up 48.3%
Natural gas futures fell last week, settling at a level not seen in seven months as extensive hotter-than-expected weather was seen continuing longer, limiting the cooling demand and the need for gas. The November Nymex natural gas futures contract closed out the week at $4.959/MMBtu, down 39.9 cents from Thursday’s close and off $1.494 from a week earlier (Oct. 14), as quoted on a source. Hence inverse leveraged natural gas ETG gained massively.
Advisorshares Msos 2X Daily ETF (MSOX - Free Report) – Up 34.2%
The global cannabis market is estimated to be valued at $27.7 billion in 2022 and is projected to reach $82.3 billion by 2027, recording a CAGR of 24.3% in terms of value, per ResearchAndMarkets.com, as quoted on benzinga. Plus, President Joe Biden recently pardoned all prior federal offenses of simple marijuana possession.
Direxion Daily Oil Services Bull 2X Shares ( – Up 29.7%
Oil prices gained as investor sentiment rose on news that China is considering an easing in the duration of quarantine for inbound visitors. Plus, OPEC+ output cut is also in place.
Bank of Montreal Microsectors Travel 3X Leverage (FLYU) – Up 27.9%
Travel stocks remained strong last week on cues of still-robust demand. Travel during the upcoming holiday season is expected to rebound greatly despite high inflation. After two years of travel bans, restrictions and lockdowns, Americans are set to hit the road. Thanksgiving and Christmas are normally two of the most traveled holidays in the fourth quarter (read: Time to Buy Leisure & Travel ETFs?).
Aerospace Defense Bull 3X Direxion (DFEN - Free Report) – Up 27.1%
Wall Street analysts are the most positive on the Defense sector, as quoted on investing.com. The latest geopolitical concerns, war between Russia and Ukraine and the resultant Western sanctions against Russia brightened the importance of the defense sector. Credit Suisse recently wrote “defense is likely to be a GDP+ growth industry for the remainder of the decade and forecast a 7.9% 8-yr CAGR for the DoD investment accounts.”