Coffee With Greta: Wholesale Inflation Surges 10%
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +172 (+0.5%) SPX Futures: +28 (+0.7%) NASDAQ Futures: +130 (+1%) Good morning friends! Futures are higher on day one of the Fed’s two-day policy meeting. Let’s get right to it! Wholesale Inflation Hits Double Digits The Bureau of Labor Statistics Producer Price Index shows prices surged 10% year-over-year in February. That was in line with expectations and is the second straight month of double digit wholesale inflation after January was revised higher. On a monthly basis, prices rose 0.8% vs 0.9% expected. Nearly 40% of that gain was due to the gasoline index, which jumped 14.8% year-over-year. The Core PPI, which excludes food, energy, and trade services, jumped 0.2% monthly and 6.6% annually. PPI is a forward indicator for consumer prices as manufacturers and service providers pass-down higher costs. This new inflation data comes on day one of the Fed’s two-day policy meeting. The central bank is expected to announce its first rate hike since 2018 on Wednesday and provide more clarity on its plans to reduce the size of its balance sheet. Oil Prices Slide to 2-Week Low Oil prices are continuing to tumble, hitting a new two-week low. West Texas Intermediate crude futures are down more than 8% to just under $95 per barrel with Brent crude futures falling nearly 8% to under $99 per barrel. The two-day drop in prices comes amid continued talks between Russia and Ukraine and as new Covid lockdowns in China threaten to weaken global demand. China is the largest importer of crude oil in the world. Russia, Ukraine Continue Ceasefire Negotiations Ukraine’s capital city of Kyiv announced a 35-hour curfew will begin tonight after several missile strikes on residential buildings in the city. A fifth round of talks between Ukrainian and Russian officials is set to take place today after the fourth round failed on Monday. Several NATO prime ministers are now heading to Ukraine to meet with the president and prime minister. The PMs of Poland, Slovenia, and the Czech Republic will visit Kyiv today. The group said, “The purpose of the visit is to confirm the unequivocal support of the entire European Union for the sovereignty and independence of Ukraine.” The EU and U.K. both rejected Russia’s “most favored nation” trading status today, allowing harsh tariffs to be imposed on Russian goods. Britain is also set to ban exports of high-end luxury goods to Russia. The EU approved new sanctions today banning transactions with state-owned businesses, a ban of Russian steel imports, a ban on new investments in Russia’s energy security, and a ban on luxury goods exports to Russia. Traders Sell Risk, Treasury Yields Spike Tech stocks sold off sharply on Monday as traders reevaluate their risk positions with the impending Fed rate hike. The Nasdaq was the largest loser of the session, closing 2% lower on Monday. High-growth tech stocks took the brunt of that drop. Cathie Wood’s Ark Innovation ETF (ARKK) plunged 6% and is now down nearly 45% YTD. ARKK shares are up 1.3% ahead of the open. Netflix (NFLX) shares have officially given up all of their pandemic gains. The streaming giant closed 2.7% lower Monday at $331.01 after notching out a new 52-week low at $329.82 earlier in the session. But NFLX shares are rebounding in premarket trade, up 1.7%. On the other side of that tech sell-off, Treasury yields popped. The 10-year yield hit a high of 2.145% Monday, its highest since July 2019. Currently the yield on the 10-year note is down 3 basis points to 2.11%. Airlines Raise Outlook Shares of the major airlines are rallying ahead of the open after hiking their revenue outlooks. Delta (DAL) shares are up 5.9%, United (UAL) is rallying 4.9%, and Southwest (LUV) shares are rising 4%. All three companies said air travel is rebounding from the Omicron slump and they expect travel demand to be stronger than previously forecast this year. Tesla Hikes Car Prices Tesla (TSLA) shares are flat in premarket trade after the electric automaker announced a price hike for its cars. The company raised prices on all models in the U.S. and the Model 3 and Model Y in China. This is the second increase in just a week. Tesla did not give a reason for the price hike but the decision comes after CEO Elon Musk warned about inflation pressures over the weekend. Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics — Elon Musk (@elonmusk) March 14, 2022 In a tweet Sunday he said, “Tesla & SPaceX are seeing significant recent inflation pressure in raw materials & logistics”. In Case You Missed It Lyft (LYFT) followed Uber’s (UBER) lead in adding a fuel surcharge for riders as gas prices remain at record highs. Lyft did not disclose how much that temporary charge will be but Uber’s fee will range between $0.45 to $0.55 per ride. The companies say that extra charge will go directly to drivers. Shares of the major vaccine makers popped on news of renewed Covid lockdowns in China Monday. Pfizer (PFE) shares jumped 3.9%, while BioNTech (BNTX) surged 12%, and Moderna (MRNA) rallied 8.6%. Shenzhen became the first city in China to be placed under a full lockdown with only essential businesses able to be open. That closure is prompting fears of more supply chain issues and worsening inflation as the city is a global tech hub and the fourth largest port in the world.
Continue Reading -->Oil Bulls Back Off
Traders are still cautious towards risk assets like stocks and Bitcoin. And interestingly, traders grew less bullish on oil this week, just in front of today’s drop in crude prices. IMPORTANT: when we reference “traders” in this article, we are specifically referring to T3 Sentiment Survey respondents. SPX: Traders Are Still Cautious Four weeks ago, bullish sentiment on SPX fell to 19% – by far the lowest reading we’ve ever had in our admittedly short 20 week history.It has since rebounded to 39%, which is still a fairly bearish reading. Bitcoin Sentiment Not Bouncing Bitcoin Sentiment was at record lows four weeks ago, and it has since bounced to 41%. That is definitely in the bearish category, even with traders speculating that the conflict in Ukraine is increasing demand for cryptos. Apple Optimism Edging Higher… Optimism towards Apple grew for the fourth week in a row, hitting 50%. That’s split right down the middle. Tesla Split Down the Middle Tesla (TSLA) sentiment is at 50% – split down the middle, just like Apple. Gold Bullishness Sliding Lower Even with the Ukraine-Russia war intensifying and inflation going through the roof, gold sentiment has drifted lower for weeks now. Oil Sentiment Drops Oil has led the market in 2022, but sentiment is dropping as many traders anticipate the highs being in. What Happens Now? Traders are still cautious on the market for good reason, including:The massive inflation spikeCentral banks pulling back accommodationThe conflict in UkraineThe overall crash in risky stocksNow we’ll see if traders are merely complacent ahead of another potential drop.
Continue Reading -->Options In Play – Earnings On The Radar Week Of 3/18/22
There will be a few big names reporting this coming week, though earnings may be overshadowed by the FOMC meeting taking place. Expect a volatile week of news, with headlines, the Fed, and earnings pushing stocks around.
Continue Reading -->When Will the Market Bottom Out?
The market doesn’t seem to have hit a bottom yet, but it’s on it’s way downward and looks like it will hit Sami’s next support area. What has to happen before you start looking at the support area after that? In this video, Sami explains: – How CRWD differed from QQQ last week – What he doesn’t like about DDS – The mistake he made on DTE – Which chart he prefers for EPAM – How to find a transition A breakout in MULN
Continue Reading -->Scott Redler’s Dog Bytes: Managing Big Metal Moves
SPX futures are +17 after closing on the lows Friday as the misdirection continues. We have the Fed Wednesday. We’re trying to figure out if SPX 4111-4222 holds and if oil put in its highs of the year. SPX pivot resistance is 4250, then 4299. The longer we stay below that, the more control the active bears can have. Tech still feels challenged. I’d watch 2022 lows in key names for clues.GLD had a big move from $170 to $193+ and it is digesting. My $174/$177 call spread expired this Friday,. You can manage it and lose a little premium, or try and max it. Now see if GLD holds the $183 area. Otherwise it can see the 21 day near $180 so be careful. SLV hit a high of $24.90 early this week. I’d think the 21 day near $22.90 holds. I managed some of my $22/$23.50 spread. Some might sell higher calls against spreads. The China issues might drag down semis. See if AMD stays below $103 or reclaims it. $99.35 is the 2022 low. Make sure to have a plan. NVDA remains trapped in its downtrend line. There are only small tactical things to do since it got rejected into the $232 area. Now see how it handles the $218 area. If it gets and stays below that, watch the 2022 lows.Positions Disclosure as of 3/14/2022 at 8:55 a.m. ET
Continue Reading -->Coffee With Greta: Fed Week Begins
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +169 (+0.5%) SPX Futures: +15 (+0.4%) NASDAQ Futures: -12 (-0.1%) Good morning friends! Futures are mixed as the market gears up for a new week of trade with the Fed set to meet. Let’s get right to it! Fed in Focus Traders are eyeing the Federal Reserve as the Central Bank prepares to meet. The Federal Open Market Committee meets Tuesday and Wednesday. The bank is expected to enact its first rate hike since 2018 and provide more clarity on plans for the balance sheet runoff. CME Group’s FedWatch Tool shows nearly 95% of traders believe the Fed will raise rates by 0.25%. Chairman Jerome Powell recently told Congress the war in Ukraine poses “uncertain” risks to the U.S. economy but the bank has no plans to alter monetary policy at this point. The Fed is under pressure to get inflation under control after the CPI hit a fresh 40-year high at 7.9% in February. Oil Prices Fall Oil prices are falling amid optimism over talks between Russia and Ukraine. West Texas Intermediate crude futures are down 4.2% to $104.74 per barrel with Brent crude futures falling 3.5% to $108.73 per barrel. U.S. gas prices cooled over the weekend after hitting a fresh record last week. According to AAA the average price for a gallon of regular gasoline is $4.325 today. Although the pace of increases slowed over the weekend, that’s up from $4.065 a week ago. Russia, Ukraine Hold Talks Ukrainian and Russian officials resumed peace talks over video today. Ukraine is still seeking to establish a cease-fire and wants all Russian troops to immediately be withdrawn from the country. Ukraine says two civilians were killed and three were injured in a Russian shelling attack on a residential building in the Obolon district of Kyiv. It’s unclear if Russia will agree to Ukraine’s demands after reports emerged that Moscow has requested military equipment from China to help in its invasion of Ukraine. Russia and China both denied those reports. Treasury Yields Rally U.S. Treasury yields are rallying ahead of the Fed meeting this week. The yield on the 10-year Treasury bond jumped more than eight basis points to 2.08% today, the highest it’s been since July 2019. The 30-year yield is also up eight basis points to 2.44%. China Lockdowns Prompt Supply Chain Worries China locked down the city of Shenzhen over the weekend, with all non-essential businesses closed or working from home. The city is a major manufacturing hub and the fourth largest port in the world. Apple (AAPL) supplier Foxconn is among the businesses that have been shutdown. The lockdown is likely to worsen the supply chain issues and inflation pressures in the U.S. economy. Only 400 cases of Covid have been confirmed in the city but China has followed a “zero Covid” policy amid the pandemic. Other major cities, including Shanghai and Beijing are on the brink of a lockdown as well. The lockdowns prompted a sell-off in Chinese stocks. Hong Kong’s Hang Seng Index fell 5.0%, while the Shanghai Composite dropped 2.6% and the Shenzhen Component fell 3.1%. In Case You Missed It The U.S. Treasury Department added more than 20 new Russian elites to the list of sanctioned individuals Friday. They include the family of Kremlin spokesman Dmitry Peskov, Russian parliament members, the management board of VTB Bank, and one Russian oligarch. The sanctions also target two Russian nationals who helped North Korea obtain material for nuclear weapons. Congress passed a $1.5 trillion omnibus spending bill to fund the government through the end of the fiscal year on September 30. The legislation includes $13.6 billion in humanitarian and security aid for Ukraine. Covid relief funding was scratched from the bill after Republicans said it was a non-starter issue. President Biden is expected to sign the bill into law this week.
Continue Reading -->Coffee With Greta: Futures Bounce on Russia-Ukraine Optimism
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +286 (+0.9%) SPX Futures: +43 (+1.1%) NASDAQ Futures: +181 (+1.3%) Good morning friends! Futures are higher amid optimism about talks between Russia and Ukraine. Let’s get right to it! Russia-Ukraine Talks Make Progress Russian President Vladimir Putin says ongoing talks between his country and Ukraine are making progress. Meeting with the Belarusian President he said, “There are some positive shifts there, as I have been told by our delegation.” Those talks are reportedly taking place daily. But Russian forces are still advancing further into Ukraine. New satellite images appear to show a Russian convoy moving into towns and forests outside of the capital Kyiv, in an apparent renewed push into the city. The U.S. is set to revoke Russia’s status as a “most-favored nation” for trade. That status exempts a country from tariffs and changing it allows Congress to impose tariffs on all goods from Russia. Goldman Sachs Downgrades GDP Forecast Goldman Sachs (GS) analysts slashed their 2022 GDP forecast for the U.S. The group now expects growth of 1.75%, down from the previous 2% and lower than consensus estimates for 2.75%. Goldman cited rising inflation and higher energy prices caused by the war in Ukraine for that downgrade. The group also said recession risks are rising. Goldman says the chances of a recession next year are now between 20% to 35%. Goldman, JPMorgan Chase Leave Russia JPMorgan Chase (JPM) joined Goldman Sachs (GS) in pulling its business out of Russia Thursday. The investment banking giants said they are working in compliance with regulators to wind down operations in the country following Russia’s invasion of Ukraine. A JPMorgan spokeswoman said in an email, “In compliance with directives by governments around the world, we have been actively unwinding Russian business and have not been pursuing any new business in Russia.” Goldman was the first major Wall Street bank to announce the move early Thursday. The investment firm said, “We are focused on supporting our clients across the globe in managing or closing out pre-existing obligations in the market and ensuring the well-being of our people.” Rivian Reports Larger Than Expected Q4 Loss Rivian (RIVN) shares are falling 10.2% ahead of the open after reporting a steeper-than-expected loss in Q4. The electric vehicle maker reported an adjusted per share loss of $2.43 per share on $54 million in revenue. That was worse than analysts’ expectations for a loss of $1.97 per share on $60 million in revenue. The stock hit a new 52-week low at $39.77 in intraday trade Thursday. Rivian warned about continued supply chain struggles for production and a “slow start” to Q1. The company expects to deliver 25,000 vehicles this year after delivering nearly 1,000 in Q4. Docusign Slips on Weak Guidance DocuSign (DOCU) shares are tumbling 16.5% in premarket trade after the company issued weak fiscal 2023 guidance. The online document signing site reported fiscal Q4 adjusted earnings of $0.48 per share on $580.8 million in revenue. That was in line with analysts’ profit expectations and beat revenue forecasts for $562 million. DocuSign also announced a $200 million stock buyback. Shares slipped after guidance came in short. DocuSign forecast fiscal 2023 total revenue will range between $2.47 billion to $2.48 billion. Analysts had forecast full-year total revenue of $2.6 billion. Oracle Sinks on Earnings Miss Oracle (ORCL) shares are down 1.5% ahead of the open after a fiscal Q3 earnings miss. The company reported adjusted earnings of $1.13 per share on $10.51 billion in revenue. Analysts were looking for adjusted EPS of $1.18 on $10.51 billion in revenue. Oracle said its profits were dragged down by investments in gene-sequencing company Oxford Nanopore and Arm server chipmaker Ampere Computing. But the company remains optimistic about the future of those investments. Oracle said, “We remain confident that our investments in these two cutting-edge technology companies will deliver very strong returns.” Senate Passes Funding Bill The Senate passed the omnibus bill to fund the government through the end of the fiscal year. The legislation was approved in a 69-31 vote late Thursday night. It now heads to the President’s desk, avoiding a government shutdown tonight. The legislation includes $13.6 billion in humanitarian and security aid for Ukraine. In Case You Missed It U.S. inflation pressures hit a new 40-year high in February. The Bureau of Labor Statistics’ CPI rose 7.9% year-over-year last month vs 7.8% expected. Groceries prices rose 8.6%, gas prices jumped 38%, and used vehicle prices surged 41.2%. The core CPI rose 6.4% annually. Amazon (AMZN) logged its second-best day of 2022 Thursday as shares jumped 5.4%. The rally came after the tech giant announced a 20-for-1 stock split and $10 billion stock buyback program. The split is set to take effect in early June.
Continue Reading -->Coffee With Greta: Inflation Is SCALDING Hot
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -326 (-1%) SPX Futures: -42 (-1%) NASDAQ Futures: -172 (-1.3%) Good morning friends! Futures are lower after talks failed between Russia and Ukraine and the release of new hot inflation data. Let’s get right to it! Inflation Heats Up in February U.S. inflation pressures were scalding hot in February. The Bureau of Labor Statistics reported the consumer price index surged 7.9% year-over-year last month. That’s a fresh 40-year high and hotter than economists’ expectations for 7.8%. On a monthly basis, prices rose 0.8% vs 0.7% expected. Energy prices continued to lead those gains with gas prices surging 38% year-over-year. Grocery prices also jumped 8.6% while used car and truck prices skyrocketed 41.2%. The core CPI, which excludes food and energy prices, rose 0.5% monthly and 6.4% annually which was in line with expectations. Weekly Jobless Claims Rise Weekly jobless claims rose more than expected last week. The Labor Department reported 227,000 Americans filed initial claims for unemployment benefits. That was up 11,000 from the previous week and higher than expectations for 216,000. Continuing claims rose by 18,000 to 1.49 million vs 1.34 million expected. Oil Resumes Rally Oil prices are on the rise again today after falling on Wednesday. WTI crude futures are up 3.8% a nearly $113 per barrel with Brent crude futures up 4.1% to nearly $116 per barrel. WTI tumbled 12.5% Wednesday, settling at $108.70 per barrel. That was the largest single-day drop since November 26. Brent dropped 13% to $111.10 per barrel, the biggest one-day decline since April 2020. The drop boosted Wall Street on Wednesday with the S&P 500 logging its best day since June 2020. Russia-Ukraine Talks Fail Talks between Russia and Ukraine’s Foreign Ministers failed today. Russia’s Sergey Lavrov and Ukraine’s Dmytro Kuleba met for just 1.5 hours in Turkey. Kuleba said Moscow’s leaders “live in their own reality” after Lavrov attempted to deny Russian attacks on civilians at a hospital. The two sides failed to establish a 24 hour cease-fire or a humanitarian corridor in and out of the southern Ukrainian port city of Mariupol. Amazon Announces 20-for-1 Stock Split Amazon (AMZN) is finally splitting its stock. The online retail giant announced after the market close Wednesday that the board has approved a 20-for-1 stock split. Amazon also said it will buy back $10 billion worth of stock. AMZN shares rallied in after-market trade and are up 4.3% ahead of the open. An Amazon spokesperson said, “This split would give our employees more flexibility in how they manage their equity in Amazon and make the share price more accessible for people looking to invest in the company.” The stock will split after the close on June 3 and trading will begin on a split-adjusted basis on June 6. Crowdstrike Pops on Earnings Beat, Strong Outlook CrowdStrike (CRWD) shares are surging 11.8% in premarket trade after issuing a strong outlook. The cybersecurity company reported fiscal Q4 adjusted earnings of $0.30 per share on $431 million in revenue. That beat analysts’ expectations for EPS of $0.20 on $411 million in revenue. And Crowdstrike’s forecast was way stronger than expected. The company expects fiscal Q1 adjusted earnings between $0.22 and $0.24 per share with revenue between $458.9 million to $465.4 million. Analysts had forecast EPS of $0.17 and revenue of $440.3 million. Crowdstrike forecast full-year earnings ranging from $1.03 to $1.13 per share on revenue of $2.13 billion to $2.16 billion. Wall Street was looking for EPS guidance of $0.90 and $2 billion in revenue. In Case You Missed It The House passed a $1.5 trillion omnibus spending bill Wednesday to fund the government through the end of the fiscal year. The final legislation did not include $15.6 billion in COVID relief Democrats had wanted but does include $13.6 billion in security and humanitarian aid for Ukraine. Congress is facing a Friday deadline to pass the bill to avoid a government shutdown. The House may pass a temporary spending plan to give the Senate more time to vote on the omnibus bill.
Continue Reading -->Coffee With Greta: Oil Slips, Stocks Rally
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +570 (+1.8%) SPX Futures: +80 (+1.9%) NASDAQ Futures: +320 (+2.4%) Good morning friends! Futures are higher as commodity prices take a breather. Let’s get right to it! Oil Prices Cool Down Oil prices are falling as the market assesses the impact of the U.S. ban on Russian oil. The U.S. banned all Russian energy imports Tuesday. West Texas Intermediate crude futures are down more than 3% at just under $120 bbl while Brent crude futures have dropped 2.9% to $124 bbl. The head of the International Energy Agency said last week’s decision to release 60 million barrels of oil reserves was “an initial response” and more could be released if needed. Other commodity prices are also taking a breather after surging for the past week. Wheat futures are down 2.8% to $12.86 per bushel. Russia also announced a ceasefire in Ukraine today, allowing civilians to flee the country. Crypto Rallies on Executive Order Cryptocurrencies are rallying today after President Biden announced an executive order on digital assets. Bitcoin is up 8% to $42,025 with Ethereum rising 6.2% to $2,740. The global crypto market cap is up 6.5% to $1.92 trillion. Biden’s executive order aims to make sure the U.S. crypto industry is not left behind. It says, “The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate.” It also directs the government to explore what’s needed for a central bank digital currency. Campbell Soup Earnings Beat Expectations Campbell Soup (CPB) shares are up 1% in premarket trade after beating fiscal Q2 profit expectations. The company reported adjusted earnings of $0.70 per share on $2.21 billion in revenue. That was compared to analysts’ expectations for adjusted EPS of $0.68 on $2.22 billion in revenue. Campbell Soup maintained its full-year guidance for earnings between $2.75 to $2.85 per share. Bumble Surges Despite Q4 Miss Bumble (BMBL) shares are surging 23.4% ahead of the open despite a wider-than-expected Q4 loss. The online dating company announced a loss of $0.08 per share on $208.2 million in revenue. That missed analysts’ expectations for a per share loss of $0.02 on $209.6 million in revenue. Total paying users rose 10.6% year-over-year to 3 million with average revenue per user jumping $2.81 to $22.83. Bumble forecast Q1 revenue between $207 million and $210 million with full-year revenue between $934 million and $944 million. Analysts were expecting $939.1 million for full-year revenue. Stitch Fix Slashes Guidance Stitch Fix (SFIX) shares are tumbling 21.6% in premarket trade after the company cut its full-year guidance. Stitch Fix reported a fiscal Q2 loss of $0.28 on $516.7 million in revenue. Analysts were expecting a loss of $0.28 per share on $514.8 million in revenue. But the company expects revenue to fall in fiscal Q3. Stitch Fix forecast net revenue between $485 to $500 million this quarter, which would be down as much as 10% year-over-year. The company also lowered its full-year guidance, expecting revenue to be flat or slightly lower compared to fiscal 2021. JOLTS Preview The Labor Department releases its January Job Openings and Labor Turnover Survey or JOLTS at 10:00 a.m. ET. The survey is expected to show the number of available jobs at the start of 2022 rose to 11 million from 10.9 million in December. That’s still outpacing the estimated 7.2 million people who were unemployed in January. U.S. businesses have struggled to fill open positions as the economy reopens. In Case You Missed It Apple (AAPL) unveiled several new products at its spring launch event Tuesday. Those include a new low-cost iPhone, new colors for the iPhone 13 and 13 Pro, a new iPad Air, a new Mac Studio computer, and a new Studio Display monitor. The new iPhone SE costs $429. It has 5G capability and Apple’s A15 processor.
Continue Reading -->5 Top ETFs for Day Traders
Day traders love ETFs. Why? Because ETFs allow traders to get market exposure fast with maximum liquidity. It’s true, you can’t buy the S&P 500 or the Nasdaq. But you CAN buy shares of ETFs that track the performance of the major indexes. And there’s even some that track the Treasury bond market. So here are 5 top ETFs for day traders: Invesco QQQ Trust Series I (QQQ) The Invesco QQQ Trust Series I (QQQ) – often referred to as just “The Qs” – tracks the performance of the Nasdaq 100. That means this ETF has a large exposure to big tech stocks like Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and Meta (FB). The fund was launched by Invesco Capital Management in 1999. QQQ has an expense ratio of 0.20% and an average trading volume of more than 75 million shares. At writing, the fund had more than $180 billion in net assets. SPDR S&P 500 ETF Trust (SPY) The SPDR S&P 500 ETF Trust (SPY) is the largest ETF in the world and it tracks the performance of the S&P 500. The SPY was introduced by State Streets Global Advisors in January 1993 and was the first ETF ever listed in the U.S. The fund has an expense ratio of 0.09% and nearly $400 billion in net assets, at writing. SPY is extremely popular, with an average daily trading volume of more than 110 million shares. iShares 20+ Year Treasury Bond ETF (TLT) The iShares 20+ Year Treasury Bond ETF (TLT) tracks the performance of an index of U.S. Treasury bonds with remaining maturities of 20 years or more. This is a way for traders to expose themselves to that type of investment without having to actually buy bonds. When Treasury yields rise, the stock market typically falls. Investing in a Treasury-linked ETF can be a way to make money in the market when that scenario is playing out. TLT has an expense ratio of 0.15% with over $16 billion in net assets, at writing. The fund has an average trading volume of more than 20 million shares per day. ProShares UltraPro S&P 500 ETF (UPRO) The ProShares UltraPro S&P 500 ETF (UPRO) is a leveraged fund that tracks the performance of the S&P 500. This fund is 3x leveraged, meaning it aims for returns or losses 3x the performance of the S&P in a session. If the S&P rose 2% in a single-session, UPRO would rise roughly 6%. But it’s the same for a loss. If the S&P 500 lost 2% in a single-session, UPRO would fall roughly 6%. The fund was created in 2009 and had nearly $3 billion in net assets, at writing. UPRO has a high expense ratio at 0.91% and average trading volume of 12.5 million shares per day. Because this fund has a goal of tracking the S&P 500’s performance on a daily basis, it is not considered a long-term investment. The amount of index exposure, AKA how many assets are held by the fund, changes every day in order to maintain the 3x leverage ratio. Direxion Daily Small Cap Bear 3x Shares (TZA) The Direxion Daily Small Cap Bear 3x Shares (TZA) tracks the Russell 2000. This is an inverse leveraged ETF, which means it moves in the opposite direction of the RUSS 2K times 3. Buying an inverse ETF allows traders to profit from a falling market without having to short any stocks. If the Russell 2000 were to fall 1% in a session, the TZA ETF would hypothetically rise 3%. The fund has an expense ratio of 0.94% and more than $359 million in net assets, at writing. It has a daily trading volume of more than 21 million shares. If you’re looking for more sector-specific ETFs to trade instead, check out this post to learn about the 4 Top FinTech ETFs to watch!
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