에 대한 최신 뉴스 ProShares UltraPro S&P 500 (ARCA:UPRO)

ProShares UltraPro S&P 500

Technology

Consumer Cyclical

Financial Services

Healthcare

Industrials

Other

Communication Services

Consumer Defensive

Energy

Utilities

Real Estate

Basic Materials

The Fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The Index is designed to measure the performance of the 500 largest companies listed and domiciled in the U.S. The top 500 companies based on market capitalization are included in the Index. These companies are then weighted based on market capitalization. The Indexs composition and the assigned weights are reevaluated every September with additional weight adjustments in March, June, and December. The Index is constructed and maintained by S&P Dow Jones Indices LLC.

NYSE

Equities

Markets

ETFs

ADRT

ARGT

BSAC

DFEN

DXYZ

GOLD

JCPB

NUSI

UPRO

XPER

뉴욕 증권 거래소(NYSE)의 여러 주식들은 기술적 문제로 인해 월요일 동부 표준시 오전 9시 40분 이후 갑자기 거래가 중단되었다. 이번 예상치 못한 거래 중단은 일반적으로 단일 주식의 과도한 변동성을 억제하는 데 사용되는 &#34;상향 한도(Limit Up)/하향 한도(Limit Down)&#34; 코드로 분류된 기술적 문제로 인해 촉발되었다.

버크셔 해서웨이, 치폴레 등 뉴욕 증권 거래소 기술적 문제로 일시 거래 중단 발생

As market volatility grew and the Nasdaq 100 approached bear-market status, an intriguing pattern emerged: <a href="https://www.benzinga.com/personal-finance/financial-advisors/25/04/44779772/gen-z-and-crypto-how-younger-generations-are-weighing-risk-in-investing">investors bet bigger on risk</a>. 
Outstanding shares in the top 50 leveraged ETFs have risen 20% since April 2, according to Citi Global Markets, cited by Bloomberg. 
The day marked President Donald Trump&#8216;s so-called &#8220;Liberation Day&#8221; declaration, which sparked tariff tensions. Even with the uncertainty, retail traders seem unfazed, piling into the high-adrenaline universe of leveraged exchange-traded funds (ETFs) in a daring attempt to reap outsized returns.
<h2 class="wp-block-heading">High Risk, Higher Conviction</h2>
Leveraged ETFs, which derive their returns through derivatives to double, triple, or quadruple an underlying index or asset daily, are experiencing an explosion of popularity. While warning of wipeouts should the market move against the trades, aggressive investors have been attracted to them as the ultimate dip-buying tools.
Nowhere is that sense of optimism stronger than in the following three ETFs that have become default vehicles for the aggressive:
ProShares UltraPro QQQ (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TQQQ#NASDAQ">TQQQ</a>)
<ul>
<li>Leverage: 3x Long Nasdaq-100</li>
<li>The poster child of leveraged dip-buying, TQQQ has attracted around <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/04/44824856/retail-traders-rush-into-leveraged-tech-etfs-betting-on-nasdaq-rebound-after-sharp-drop">$7.1 billion in net inflows since mid-February</a>, $3.1 billion of which came in following the tariff announcements in early April. Aimed to triple the daily return of the tech-heavy Nasdaq 100, TQQQ dropped more than 50% earlier this year but has since recovered almost 30% from its April 9 low.</li>
<li>Despite a 45% decline from its February high, the rampant buying indicates increased risk appetite as investors hope for another tech-led recovery.</li>
</ul>
Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>)
<ul>
<li>Leverage: 3x Long Semiconductor Index</li>
<li>While the semiconductor industry rides another bumpy cycle, investors are piling into SOXL in hopes that AI demand and supply chain normalization will reignite chip stocks. The ETF brought in $1.8 billion last week alone, <a href="https://www.bloomberg.com/news/articles/2025-04-17/day-traders-refuse-to-give-up-favorite-obsession-leveraged-funds?sref=TBDibEcD">per </a>Bloomberg.</li>
<li>SOXL is designed to provide three times the daily performance of the PHLX Semiconductor Index. Although this leverage amplifies losses as well as gains, it has not dissuaded investors looking for the next big move higher in Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), AMD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and other semiconductor players.</li>
</ul>
ProShares UltraPro S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>)
<ul>
<li>Leverage: 3x Long S&amp;P 500</li>
<li>While the Nasdaq gets all the headlines, UPRO provides three times exposure to the broad S&amp;P 500—a good bet for those playing a broad-based rebound. The ETF took in $633 million last week, Bloomberg reported.</li>
<li>Even as the wider S&amp;P slid under the weight of tariffs, investors just kept coming in, indicating that most view the drawdown as a buying opportunity, not as a reason to run.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/etfs/new-etfs/25/04/44866215/exclusive-defiance-letting-you-go-2x-long-on-quantum-2x-short-on-ai-straight-from-the-ceo">EXCLUSIVE: Why Defiance Is Letting You Go 2X Long On Quantum, And 2X Short On AI, Straight From The CEO</a>
<h2 class="wp-block-heading">Volatility As A Feature, Not A Bug</h2>
Despite warnings from figures like hedge fund titan Bill Ackman, who recently decried leveraged funds for &#8220;driving dramatic market moves,&#8221; their popularity remains undiminished. Citi analysts note that while retail volumes broadly dipped, leveraged ETFs were an exception, with six making the top 25 most-traded list on Interactive Brokers.
Demand for leveraged ETFs reflects a change in retail investing psychology: volatility is not something to hedge but profit from.
The increased leveraged ETF inflows during a market retreat say it all. Retail traders, some who got their start during the meme stock boom and the 2022 bear market, are growing more comfortable with high-conviction, high-risk bets.
Though the ride is frightening; TQQQ declined 80% in the previous bear cycle before its record-breaking rally; the reward potential brings traders back for more.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/25/04/44891004/meet-the-key-five-people-who-are-shaping-trumps-economic-agenda">Meet the Key Five People Who Are Shaping Trump&#8217;s Economic Agenda</a></li>
</ul>
Image: Shutterstock

Specialty ETFs

NVDA

SOXL

TQQQ

3 High-Risk ETFs Aggressive Retail Investors Can't Stop Buying

For many people, the idea of passive income is beyond charming, and it is what drives countless individuals to explore different <a href="https://in.benzinga.com/personal-finance/25/03/44335110/stupid-20-year-investment-plan-investor-questions-200000-dividend-strategy-is-it-stupid-to-put-in-that-much-into-schd">investment</a> approaches.
Still, one of the most common challenges investors face, especially those at the beginning of their journey, is whether to prioritize growth assets or <a href="https://in.benzinga.com/markets/25/03/44196217/53-year-old-with-200k-to-invest-seeks-best-stocks-for-retirement-should-i-go-all-in-on-etfs-or-bet-b">dividend</a> investing. Both methods have their benefits, but choosing the right course can be difficult, especially when balancing short-term financial needs with long-term <a href="https://www.benzinga.com/personal-finance/24/12/42301100/most-americans-dont-see-wealth-as-the-key-to-financial-success-heres-what-matters-more-to-59-of-them">wealth</a> expansion.
Let&#8217;s dive into the story of a 33-year-old investor with a $40,000 portfolio who is faced with this very challenge. The Reddit user has $30,000 of the total amount invested in dividend-focused assets, generating approximately $190 per month in passive income after taxes.
Don't Miss:
<ul>
<li><a href="https://www.benzinga.com/money/are-you-rich">Are you rich?</a> Here&#8217;s what Americans think you need to be considered wealthy.</li>
<li>Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die."<a href="https://www.benzinga.com/money/warren-buffet-make-money-when-you-sleep"> Here&#8217;s how you can earn passive income with just $100.</a></li>
</ul>
His goal is to build a portfolio that will earn him enough dividends that he can live off them and to achieve this, he plans on investing 80% to 100% of his active income into dividend shares, ETFs, and funds.
&#8220;For now, I&#8217;m thinking maybe investing up to 20% of my portfolio to &#8220;growth&#8221; like [ProShares UltraPro QQQ (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tqqq#NASDAQ">TQQQ</a>)] and [ProShares UltraPro S&amp;P 500 (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/upro#NYSE">UPRO</a>)], only on big corrections, and 80% of my portfolio continue to hold/reinvest in dividend assets. Or maybe focus only on growth, sell all dividend assets, and invest 80% now only in Index ETFs ([SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>)], [Invesco QQQ Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>)]) and 20% in leverage ETFs&#8230; There is a psychological aspect too, when I see passive income every month–it&#8217;s very motivating to continue investing more, to grow dividend income. So, dilemma&#8230; What do you think?&#8221; the young investor wrote.
Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. <a href="https://www.benzinga.com/money/masterworks">See which asset class has outpaced the S&amp;P 500 (1995-2024) – and with near-zero correlation.</a>
The Reddit community took the comments by storm, sharing advice, insights, and suggestions, so let&#8217;s dive deep into these.
<h2 class="wp-block-heading">Invest $40,000 in Growth-Focused Assets or Dividends? Reddit Responds</h2>
Prioritize Growth Assets Now, Transition to Dividends Later
Many Reddit users advised the poster to focus on growth while he&#8217;s young as this strategy typically yields higher returns over the long run.
&#8220;If you&#8217;re young, I&#8217;d stick the money in a growth fund and let it ride. If you love dividends you can drop or reinvest the dividends into growth. There&#8217;s no wrong answer&#8230; but if you&#8217;re young, you&#8217;ll end up with more money investing in &#8220;growth&#8221; now. I&#8217;m 57 and started building my dividend portfolio about 15 years ago&#8230; I live on them now,&#8221; a Redditor said.
One commenter suggested a phased approach and mentioned several funds he advised the poster to invest in.
&#8220;When younger, just try and match the market. Meaning, just buy [Vanguard S&amp;P 500 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voo#NYSE">VOO</a>)] or [Vanguard Total Stock Market ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vti#NYSE">VTI</a>)]. Averaging 10% annually, or whatever the market is doing for 30 years, is guaranteed millionaire-making based on history. If you get crazy, follow Professor G's 3-fund approach and add in [Invesco QQQ Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>)] and [Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)]. SCHD will be your doorway to dividends. Then, as you start nearing retirement, start pivoting more of your portfolio to high-quality income and dividend stuff. For me, that was [JPMorgan Equity Premium Income ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jepi#NYSE">JEPI</a>)], [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jepq#NASDAQ">JEPQ</a>)], [iShares Preferred &amp; Income Securities ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pff#NASDAQ">PFF</a>)], and about 15 other income investments and stocks,&#8221; his comment reads.
&#8220;Obviously, wealth building should be your first goal. You could use value stocks or bonds that pay dividends for diversification, but diversification doesn&#8217;t speed up wealth building, it just softens market drawdowns (and restricts bull markets),&#8221; another Redditor suggested.
A user also recommended the investor focus on growth first and later transition to dividend-paying assets.
&#8220;Focus on growth assets first, build a larger capital base, and transition into dividend investing later. In my opinion. This is my plan. Dividends are great until you have to start eating into the balance to pay large expenses,&#8221; he said.
See Also: Have $200K saved?<a href="https://www.benzinga.com/money/have-200k-saved-heres-how-to-turn-it-into-lasting-wealth"> Here's how to turn it into lasting wealth</a>
Psychological Motivation Vs. Financial Logic
Commenters also admitted the psychological benefits of dividend investing the poster mentioned, especially the motivation that comes from seeing regular income, but they also warned against letting feelings override a good financial plan.
&#8220;Many people spend their whole lives chasing an imaginary number. First, define for yourself what &#8220;enough&#8221; is and keep doing what you&#8217;re doing, you&#8217;re probably better off than you realize. Also, the &#8220;fastest&#8221; way is very rarely the most &#8220;logical&#8221; way, but the biggest thing you can do after cutting back spending is increase your income,&#8221; a commenter said.
A user cautioned against investing in too many assets and ending up having too many tickers to handle, suggesting a few ETFs instead.
&#8220;One thing I would caution against though, regardless of which way you go, is having too many tickers and positions to monitor. Once you get into individual stocks, managing more than 15-20 becomes basically a full-time job; at least to do it properly. So my personal recommendation would be to move into a few ETFs that align with your investment thesis unless you feel you can manage that many individual positions,&#8221; the Redditor advised.
Read Next:
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<li>Dogecoin millionaires are increasing –<a href="https://www.benzinga.com/money/dogecoin-millionaires"> investors with $1M+ in DOGE revealed!</a></li>
<li>How do billionaires pay less in income tax than you?<a href="https://www.benzinga.com/money/tax-deferring-adv"> Tax deferring is their number one strategy</a>.</li>
</ul>

Personal Finance

JEPI

JEPQ

iShares S&P US Preferred Stock Index Fund

SCHD

Investor With $40,000 Portfolio Wonders If He Should Pick Dividend Investing Or Growth First – 'Would You Prioritize Dividends Or Growth?

Editor&#8217;s note: This story has been updated with additional details.
Multiple stocks on the New York Stock Exchange experienced sudden trading halts after 9:40 a.m. ET Monday <a href="https://www.benzinga.com/topic/nyse">due to technical issues.</a>
The unexpected pauses in trading were triggered by a technical issue categorized under the &#8220;Limit Up/Limit Down&#8221; code, which is typically used to curb excessive volatility in a single stock.
The NYSE said it is investigating the reported technical issue. &#8220;Additional information will follow as soon as possible,&#8221; NYSE-owner Intercontinental Exchange Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICE#NYSE">ICE</a>) stated. 
Among the largest companies halted on Monday were Berkshire Hathaway Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) at 9:50:52 a.m. ET and Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) at 9:44:58 a.m. ET. 
Chipotle shares experienced a sudden and dramatic decline of 66%, plummeting from $3,097 to $1,047. The stock resumed trading at 10:21 a.m.
At 9:49 a.m., ET shares of Berkshire Hathaway faced an even more severe downturn, nearly being wiped out with a staggering 99.7% collapse from $622,375 to $185.10. As of this update, trading has not yet resumed for the company owned by Warren Buffett.
Monday&#8217;s technical malfunctions on the NYSE occur just one week after U.S. stock exchanges transitioned to a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39039375/t-1-settlement-era-on-trading-begins-what-you-need-to-know">one-day settlement period.</a>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-1024x500.png" alt="" class="wp-image-368052" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-1024x500.png" alt="" class="wp-image-368067" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Other Stocks Impacted </h3>
Other stocks affected by the sudden technical glitch on the New York Stock Exchange in Monday trading include:
<ul>
<li>Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>)</li>
<li>Barrick Gold Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>)</li>
<li>Franco-Nevada Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNV#NYSE">FNV</a>)</li>
<li>Essex Property Trust, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>)</li>
<li>NuScale Power Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMR#NYSE">SMR</a>)</li>
<li>Destiny Tech100 Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXYZ#NYSE">DXYZ</a>)</li>
<li>Ault Disruptive Technologies Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADRT#NYSE">ADRT</a>)</li>
<li>Nouveau Monde Graphite Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NMG#NYSE">NMG</a>)</li>
<li>Bowhead Specialty Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOW#NYSE">BOW</a>)</li>
<li>Banco Santander-Chile (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSAC#NYSE">BSAC</a>)</li>
<li>Logistic Properties of the Americas (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPA#NYSE">LPA</a>)</li>
<li>Xperi Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPER#NYSE">XPER</a>)</li>
<li>ICL Group Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICL#NYSE">ICL</a>)</li>
<li>Telefonica, S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEF#NYSE">TEF</a>)</li>
<li>Trinity Industries, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRN#NYSE">TRN</a>)</li>
</ul>
The technical fallout also impacted trading on the following NYSE-Arca listed exchange traded funds:
<ul>
<li>Direxion Daily Aerospace &amp; Defense Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFEN#NYSE">DFEN</a>)</li>
<li>MAX S&amp;P 500 4x Leveraged ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>)</li>
<li>JPMorgan Core Plus Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCPB#NYSE">JCPB</a>)</li>
<li>Global X MSCI Argentina ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARGT#NYSE">ARGT</a>)</li>
<li>Nationwide Nasdaq-100 Risk-Managed Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUSI#NYSE">NUSI</a>)</li>
<li>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>)</li>
</ul>
Read now: <a href="https://www.benzinga.com/news/24/06/39136240/koss-corp-tupperware-blackberry-shares-are-moving-monday-whats-going-on">Koss Corp, Tupperware, BlackBerry Shares Are Moving Monday: What&#8217;s Going On?</a>
Photo via Shutterstock.

Berkshire Hathaway, Chipotle, More NYSE Stocks Hit With Trading Halts Triggered By Technical Issues (UPDATED)

<ul>
<li>UPRO</li>
<li>BB</li>
<li>TSLA</li>
<li>TQQQ</li>
<li>SPAM</li>
<li>QQQ</li>
<li>XBI</li>
</ul>
Data from <a href="https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment">https://swaggystocks.com/dashboard/wallstreetbets/ticker-sentiment</a>
&nbsp;

Trading Ideas

SPAM

TSLA

Top 7 Trending Stocks On WallStreetBets As Of December 21, 2023 (Via Swaggy Stocks)

The U.S. stock market has seen an increase in buying activity recently. From positive macroeconomic events to earnings surprises, investor sentiment has been faring better than earlier in the year. And, November was a particularly good month for the <a href="https://www.benzinga.com/markets/equities/23/12/36068749/s-p-500-recorded-its-2nd-best-november-since-1980-strategists-see-bullish-6-months-ahead">U.S. stock market</a>.
<h2 class="wp-block-heading">S&amp;P 500 Up 9% Since Oct. 31</h2>
Exchange-traded funds that closely track the S&amp;P 500 index, namely the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the&nbsp;iShares Core S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the&nbsp;Vanguard 500 Index Fund ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)&nbsp;are up over 9% since Oct. 31.
Leveraged ETFs have multiplied gains for investors. The&nbsp;Direxion Daily S&amp;P 500 Bull 3X Shares&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPXL#NYSE">SPXL</a>) and the&nbsp;ProShares UltraPro S&amp;P 500&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>) delivered close to&nbsp;28%%&nbsp;in price returns since Oct. 31.
The benchmark rallied 8.9% in November alone, recording the second biggest November gain since 1980. Macro tailwinds such as declining bond yields and expectations of monetary policy easing by the Fed have been helping with investor sentiment about the stock market overall. 
Solid earnings beat added to it: 82% of S&amp;P 500 companies reported a positive EPS surprise and 62% of S&amp;P 500 companies reported a positive revenue surprise. For third-quarter 2023, the blended Y/Y earnings growth rate for the S&amp;P 500 is 4.8%, <a href="https://advantage.factset.com/hubfs/Website/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_120123.pdf">according</a> to FactSet.
Related: <a href="https://www.benzinga.com/markets/equities/23/12/36068749/s-p-500-recorded-its-2nd-best-november-since-1980-strategists-see-bullish-6-months-ahead">S&amp;P 500 Recorded Its 2nd Best November Since 1980: Strategists See Bullish 6 Months Ahead</a>
<h2 class="wp-block-heading">Another &#8216;Extreme Buying&#8217; Event Adds To Positive 2024 Expectations</h2>
Per Carson Investment Research, as <a href="https://twitter.com/RyanDetrick/status/1731783389903008018/photo/1">reported</a> by Ryan Detrick, an event was recorded every time more than 60% of the components in the S&amp;P 500 hit a 20-day high — &#8220;extreme buying&#8221; events. Accordingly, every time an event was recorded, the S&amp;P closed higher, a year later. This time, for the 15th time. The S&amp;P 500 has averaged an 18% 12-month return over the past 15 such events.
All this market frenzy soaked in optimism is adding to a growing list of reasons to expect a strong 2024.
Read Next:&nbsp;<a href="https://www.benzinga.com/23/12/36062039/where-is-s-p-500-headed-in-2024" target="_blank" rel="noreferrer noopener">Where Is S&amp;P 500 Headed In 2024?</a>
Photo: Shutterstock

Earnings

Large Cap

Macro Economic Events

SPXL

'Extreme Buying' Sends Over 60% Of S&P 500 Stocks To 20-Day Highs

November 2023 was a good month for the stock market. The benchmark S&amp;P 500 index rallied 8.9%. Exchange-traded funds that closely track the index, namely &#8211; the SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) &#8211; also <a href="https://www.benzinga.com/quote/SPY">saw similar gains</a>. 
The rally marked the second-biggest November gain recorded by the S&amp;P 500 index since 1980, as <a href="https://www.bloomberg.com/news/articles/2023-11-30/frantic-year-end-awaits-stock-bulls-after-historic-november-win">reported</a> by Bloomberg. It also marked the 18th biggest monthly gain since 1950, chief strategist at LPL Financial <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-history-rally-equities-investors-finance-bonds-fed-2023-12">noted</a>.
Factors that helped fuel the rally are being recognized as:
<ul>
<li>declining bond yields</li>
<li>solid earnings</li>
<li>expectations of monetary policy easing by the Fed, and</li>
<li>seasonal tailwinds</li>
</ul>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36063426/a-stellar-2023-for-s-p-500-yet-2024-looks-brighter-with-prospects-of-interest-rate-">A Stellar 2023 For S&amp;P 500, Yet 2024 Looks Brighter With Prospects Of Interest Rate Reductions By Fed</a>
Leveraged ETFs multiplied gains for investors. The Direxion Daily S&amp;P 500 Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPXL#NYSE">SPXL</a>) and the ProShares UltraPro S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>) delivered close to 25% in price returns over November.
&#8220;November certainly lived up to its reputation as being the best month for stocks,&#8221; said Adam Turnquist, chief technical strategist for LPL Financial. Turnquist expects the average forward returns over the next six months to be 8.8%.
The rally has sparked optimism in the markets. Market pundits are now expecting more gains in the future. The November rally, to many, is signalling a bullish 6 months ahead.
The chart below clearly show that the SPY ETF, a broad indicator of the U.S. stock market, last hit its lows when its price fell below the 200-day simple moving average. Subsequently, the rally in November occurred as the SPY price line rose above this 200-day SMA.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/04084112/SPY-with-200D-SMA.jpg" alt="" class="wp-image-154864" style="width:800px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/04084112/SPY-with-200D-SMA.jpg 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2023/12/04084112/SPY-with-200D-SMA-300x260.jpg 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The technical analysis, indicating a significant move above the 200-day SMA, suggests alignment with market strategists&#8217; optimistic outlook for the upcoming months.
Read Next: <a href="https://www.benzinga.com/23/12/36062039/where-is-s-p-500-headed-in-2024">Where Is S&amp;P 500 Headed In 2024?</a>
Photo: Shutterstock

Broad U.S. Equity ETFs

Technicals

Market-Moving Exclusives

S&P 500 Recorded Its 2nd Best November Since 1980: Strategists See Bullish 6 Months Ahead

News

AAPL

AFRM

BBBY

DNAA

ENDP

GBNH

Ten Stocks Trending on Discord This Weekend: AMC, TSLA, AAPL, BBBY, GBNH, DNAA, NVDA, AFRM, UPRO, ENDP

Stock Split

ProShares ETFs CSM, ROM, SSO, TQQQ, UCC, UPRO Trading Thursday Following Effect of 2:1 Forward Stock Split; UGE Trading Following Effect of 4:1 Forward Stock Split

On Thursday, shares of ProShares UltraPro S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>) saw unusual options activity. After the option alert, the stock price moved up to $123.55. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-30</li>
<li>Strike Price: $123.00</li>
<li>Volume: 3233</li>
<li>Open Interest: 620</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Strategies To Trade Options</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Options

Unusual Options Activity Insight: ProShares UltraPro S&P 500

ProShares UltraPro S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>) shares experienced unusual options activity on Friday. The stock price moved up to $122.1 following the option alert. 
<ul>
<li>Sentiment: NEUTRAL</li>
<li>Option Type: TRADE</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-09-17</li>
<li>Strike Price: $135.00</li>
<li>Volume: 560</li>
<li>Open Interest: 1154</li>
</ul>
<h2>Three Ways Options Activity Is ‘Unusual'</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Using These Options Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Shares of ProShares UltraPro S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>) saw some unusual options activity on Wednesday. Following the unusual option alert, the stock price moved up to $117.49. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-23</li>
<li>Strike Price: $118.00</li>
<li>Volume: 1401</li>
<li>Open Interest: 150</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts that are "out of the money" are also indicative of unusual options activity. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Analyzing ProShares UltraPro S&P 500's Unusual Options Activity

ProShares UltraPro S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>) shares experienced unusual options activity on Friday. The stock price moved up to $118.58 following the option alert. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-07-09</li>
<li>Strike Price: $118.00</li>
<li>Volume: 297</li>
<li>Open Interest: 70</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset. 
Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity. 
<h2>Trading Options With These Strategies</h2>
Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.
For more information to understand options alerts, visit <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>) and Alphabet Inc Class A (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>) shares are both trading higher by 5% after the tech company reported better-than-expected first-quarter EPS and sales results. Alphabet also announced a $50 billion Class C Capital Stock buyback.
A number of analyst rating updates followed the earnings beat:
<ul>
<li>Keybanc analyst Justin Patterson maintains Alphabet with an Overweight and raises the price target from $2625 to $2681.</li>
<li>Needham analyst Laura Martin maintains Alphabet with a Buy and raises the price target from $2500 to $2700.</li>
<li>Barclays analyst Ross Sandler maintains Alphabet with an Overweight and raises the price target from $2500 to $3000.</li>
<li>Raymond James analyst Aaron Kessler maintains Alphabet with an Outperform and raises the price target from $2440 to $2750.</li>
<li>Oppenheimer analyst Jason Helfstein maintains Alphabet with an Outperform and raises the price target from $2350 to $2510.</li>
<li>JMP Securities analyst Ronald Josey maintains Alphabet with a Market Outperform and raises the price target from $2400 to $2850.</li>
<li>Wells Fargo analyst Brian Fitzgerald maintains Alphabet with an Overweight and raises the price target from $2650 to $2850.</li>
<li>Credit Suisse analyst Stephen Ju maintains Alphabet with an Outperform and raises the price target from $2500 to $2755.</li>
<li>Mizuho analyst James Lee maintains Alphabet with a Buy and raises the price target from $2600 to $2800.</li>
</ul>
Alphabet is a holding company, with Google, the Internet media giant, as a wholly-owned subsidiary. Google generates a majority of Alphabet revenue, of which around 85% is from online ads.
Google&#39;s other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home also contribute to other revenue.&nbsp; 
Investors looking for exposure to Alphabet via an ETF should know the FAANG company can be found in the SPDR S&amp;P 500 ETF Trust (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/spy#NASDAQ">SPY</a>), Invesco QQQ Trust Series 1 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qqq#NASDAQ">QQQ</a>) and ProShares UltraPro S&amp;P500 (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/upro#NASDAQ">UPRO</a>).

Price Target

Analyst Ratings

Movers

GOOG

GOOGL

Analyst Rating Updates For Alphabet Following Earnings Blowout

ProShares, the largest sponsor of leveraged ETFs, said seven of its ETFs will undergo traditional, forward splits while another eight will be subject to reverse splits. 

Maryland-based ProShares made the announcement <a href="http://www.dailyfinance.com/2013/05/24/proshares-announces-etf-share-splits/">in a statement</a> released after the close of U.S. markets Friday.

The seven ProShares ETFs that will be split on a forward basis are the following: The ProShares Ultra Consumer Goods (NYSE: <a class="ticker" href="/stock/uge#NYSE">UGE</a>), ProShares UltraPro S&amp;P500 (NYSE: <a class="ticker" href="/stock/upro#NYSE">UPRO</a>), ProShares UltraPro MidCap400 (NYSE: <a class="ticker" href="/stock/umdd#NYSE">UMDD</a>), ProShares Ultra Russell3000 (NYSE: <a class="ticker" href="/stock/uwc#NYSE">UWC</a>), ProShares Ultra Health Care (NYSE: <a class="ticker" href="/stock/rxl#NYSE">RXL</a>), ProShares Ultra Consumer Services (NYSE: <a class="ticker" href="/stock/ucc#NYSE">UCC</a>) and the ProShares UltraPro Russell2000 (NYSE: <a class="ticker" href="/stock/urty#NYSE">URTY</a>).

All of those ETFs will be split two-for-one and begin trading at their split-adjusted prices on June 10.

The eight ProShares ETFs that will be reverse split are the following: The ProShares UltraShort DJ-UBS Natural Gas (NYSE: <a class="ticker" href="/stock/kold#NYSE">KOLD</a>), the ProShares VIX Short-Term Futures ETF (NYSE: <a class="ticker" href="/stock/vixy#NYSE">VIXY</a>), ProShares Ultra VIX Short-Term Futures ETF (NYSE: <a class="ticker" href="/stock/uvxy#NYSE">UVXY</a>), ProShares UltraShort Oil &amp; Gas (NYSE: <a class="ticker" href="/stock/dug#NYSE">DUG</a>), ProShares UltraPro Short Financials (NYSE: <a class="ticker" href="/stock/finz#NYSE">FINZ</a>), ProShares UltraPro Short 20+ Year Treasury (NYSE: <a class="ticker" href="/stock/ttt#NYSE">TTT</a>), ProShares UltraShort Russell1000 Value (NYSE: <a class="ticker" href="/stock/sjf#NYSE">SJF</a>) and the ProShares UltraShort MSCI EAFE (NYSE: <a class="ticker" href="/stock/efu#NYSE">EFU</a>).

All of those ETFs will be reverse split on a one-for-four basis except VIXY and UVXY. VIXY will be split one-for-five and UVXY will be split one-for-10. The reverse split ETFs will also begin trading at their post-split prices on June 10.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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ProShares to Split 15 ETFs

Thought For The Day... Always and never are two words you should always remember never to use. - Wendell Johnson

It is safe to say that all eyes are on Cyprus Monday morning as the proposed tax on savings accounts (10 percent on accounts over 100K euros and 6.75 percent on accounts below 100K) has brought the European debt crisis back into focus. As usual, the key here is the situation with the banks. 

First, the banks in Cyprus. Second, the banks in Greece and then the eurozone. And finally, the banks around the globe. 

Who has lent what to whom? Which banks have exposure to big losses? And won't a tax on bank deposits just mean that savers will take their money and run? And then if other countries decide to adopt this type of tax in order to get help from the eurozone, aren't bank runs a serious possibility? In short, this is what today will be all about. 

But since the banks are closed in Cyprus today (and may stay closed for a while) and the bottom line is the proposal to basically grab money from the citizens of Cyprus still needs to be approved by the country's Parliament, the severity of the current problem remains unknown. (Note that new proposals such as Russia coming to the rescue in exchange for oil/natural gas exploration rights are coming fast and furious and the government in Cyprus is already backing off of the "levy" proposal to some degree.) 

So, while we will once again be focused on the headlines, comments, and rumors out of Europe, I think it is okay to return our attention to the bigger picture of the markets this morning.

Back To The Big Picture: How To Play The Coming Correction

Although the DJIA finished lower on Friday for the first time in eleven sessions (and was red for only the second time in the last 14 days), there was some good news. First, while everybody on the planet knows that this rally is a bit extended and vulnerable, the bears didn't really get much of anything going on Friday (and it remains to be seen how much damage the Cyprus situation will actually cause). 

And second, <a href="http://www.benzinga.com/markets/13/03/3420975/does-the-dows-winning-streak-mean-anything">as detailed on Thursday</a>, a 10-day winning streak on the Dow is (a) rare (17 prior occurrences since 1900) and (b) a relatively good harbinger for the bulls.

To review briefly, if the DJIA winds up with a gain over the next two weeks, history shows that the returns for 10-day periods after a 10-day winning streak are more than six times the average return for all 10-day periods. And if the DJIA can finish higher over the next month, the average return is five times higher than normal. 

Then the returns for the next eight weeks (assuming the Dow is up for the period) have averaged +5.71 percent, or more than 5.4 times the average 8-week return. In short, THIS is what market momentum is all about. In other words, when the bulls get on a roll like this, they tend to stay on a roll.

But everybody on the planet is nervous right now - especially now that Cyprus appears to be blowing up. The macro bears (including more than a few big hedge fund names) are more than a little concerned about those short positions that have been costing them big money this year. And then the bulls are nervous because everybody knows how this type of joyride to the upside tends to end. 

So, now that the Dow's 10-day winning streak is over and the S&amp;P 500 is within a stone's throw from a new high, it is probably time to take one of two tacks. (1) Investors can decide that they've got history on their side and bet that any corrective action that appears in the near-term will be short and shallow. Or (2) you can be proactive and decide to prepare for the coming bear raid.

For those choosing option one, there really isn't much to do here. Probably the biggest thing is to be prepared to watch the action closely during the upcoming correction. You will need to be on the lookout for signs that your thesis is wrong. We'd suggest watching key support levels such as 1480 on the S&amp;P 500. 

A breach of this level would mean that the correction would be exceeding the five percent level (from Friday's closing price, that is), which would be a very simplistic method of confirming that the decline may be turning into something more than a garden-variety pullback within an ongoing bull move.

For those choosing option two, you will probably want to start taking proactive action - and soon. The reason for taking action sooner rather than later is simple: The next decline will likely involve a negative catalyst or trigger. As such, once the catalyst occurs, EVERYONE looking for such a trigger will jump on the short side at the same time. Thus, the time available to react to the move is likely to be very limited. 

Five Proactive Methods for the Upcoming Correction

1. Reduce Your Beta

The first way to play for the correction that nearly everybody in the game is looking for is to reduce the beta in your holdings. In English, this means that it is probably time to take your foot off the gas pedal a bit.

According to <a href="http://en.wikipedia.org/wiki/Beta_(finance)">Wikipedia</a>, "beta" is defined as follows: In finance, the Beta of a portfolio is a number describing the correlated volatility of an asset in relation to the volatility of the benchmark that said asset is being compared to. This benchmark is generally the overall financial market and is often estimated via the use of representative indices, such as the S&amp;P 500.

If a portfolio strategy that you employ tends to outperform - especially during rising markets - then it is a safe bet that said strategy has a fairly high beta. The idea here is to reduce the beta of the strategy by raising some cash with the goal being to bring the beta down to 1 or below. 

Here's an example. In our "Insider Buying Strategy" we buy stocks that corporate insiders (employees that are required to notify the government when they buy their company's stock) are buying - but only when they are buying heavily. (In short, this tells us that something is "up" with the company.) We take a concentrated approach in this portfolio, meaning that each holding is a 10 percent position. Such an approach has performed quite well and has outperformed the market handily. 

However, we have also learned over time that such a concentrated approach will be much more volatile than the market - especially during corrections.

So, given this knowledge and the fact that the market is very overbought, we have been raising cash recently. Currently we have more than 30 percent on the sidelines. This is due in part to the market environment and the fact that there have been very few stocks that meet our buy criteria of late. 

The goal here is to "take the turbo" off of the portfolio for a while in an attempt to retain the healthy lead we've got on the S&amp;P index this year.

2. Put On a Hedge or Two

The second way to play is to put some hedges on in your portfolio. For the uninitiated, the idea is to buy stuff that goes up when the market goes down. Yes, this approach will indeed hurt your performance if the market roars higher from here. Thus, you need to understand that putting on a hedge is like buying homeowners insurance - it has a cost and only pays when something bad happens.

The question of how to hedge (i.e. what to buy) is tricky. A popular approach is to be "long premium" via the volatility index (aka the VIX). However, note that the ETFs designed to mimic the VIX do not do so consistently for a myriad of reasons. Thus, be very careful buying ETFs such as the VXX or the VXZ as they may not deliver what you are expecting.

You can also buy ETFs designed to hedge such as the AdvisorShares Ranger Equity Bear ETF (NYSE: <a class="ticker" href="/stock/hdge#NYSE">HDGE</a>) or the ETRACS Fisher-Gartman Risk Off ETF (NYSE: <a class="ticker" href="/stock/off#NYSE">OFF</a>). But it is important to note that the HDGE is an actively managed ETF. Thus, the "bets" may not pay off as anticipated. In addition, before you bomb into the OFF, which is promoted by media darling Dennis Gartman, understand that this ETF is VERY thinly traded at times and that the "risk-on/risk-off" trade that was popular during 2010-2011 has become far less so these days.

But perhaps the most straightforward way to hedge a long-oriented portfolio strategy is to use inverse ETFs and/or leveraged inverse ETFs. Although there are many alternatives to choose from, my personal favorites are the ProShares Short S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sh#NYSE">SH</a>), the ProShares UltraShort S&amp;P (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>), which is a leveraged ETF designed to deliver 2X the daily return of the index, and the ProShares UtraPro Short S&amp;P (NYSE: <a class="ticker" href="/stock/spxu#NYSE">SPXU</a>), which is a 3X leveraged short ETF.

However, given that the stated objective of these ETFs is to deliver the inverse (or some multiple thereof) on a DAILY basis, these may not be good long-term holdings. Studies show that shorting the long ETFs (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>), (NYSE: <a class="ticker" href="/stock/sso#NYSE">SSO</a>), and (NYSE: <a class="ticker" href="/stock/upro#NYSE">UPRO</a>) is a more sound approach for those comfortable with putting on actual short positions.

The strategy here is to either use cash in your portfolio to buy inverse ETF's in order to hedge the remaining long positions (which, we assume, you would want to hold onto during a garden-variety market pullback) or to sell short positions. Such an approach will produce profits in the portfolio during market declines, which should offset some or all of the losses on the remaining long positions. 

3. Sell Premium

The next idea is for those folks with stock portfolios. Assuming your portfolio is of sufficient size - meaning that you hold positions of 100 shares or more - you can "sell premium" on positions you want to continue to hold in order to produce some income for your portfolio. 

In short, the idea is to sell calls on positions you want to hold (i.e. sell a "covered call"). This approach is best when the pullback is expected to be shallow. And it is also important to note that selling covered calls may cause your long position to be "called away" if the bulls continue to run. However, this is a relatively low-risk way to help your stock portfolio weather an upcoming storm.

4. Play The Rotation Game

You can also reduce the beta in your portfolio by swapping out more volatile positions with some lower beta holdings. The idea here is to take profits on stocks that have been rocket ships lately (things like Home Depot (NYSE: <a class="ticker" href="/stock/hd#NYSE">HD</a>) or Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>)) and replace them with lower beta areas such as utilities or telecoms. 

However, it is VERY important to note that in declines - especially if they become severe - ALL stocks go down, it's just a question of degree. Thus, this approach probably provides the least amount of "defense" for your portfolio of the alternatives reviewed so far.

5. Hire a Pro (The Personal Favorite!)

Finally, you can hire a pro that specializes in long/short and/or active management strategies. This one is dear to my heart, so I'm definitely talking my book here. 

But another way to play for an upcoming correction is to hire a manager (or purchase a subscription service) that is adept at sidestepping declines and/or profiting from big corrections in the stock market, and then allocate a portion of your portfolio to this type of strategy. 

This is where my marketing team tells me that I should insert a shameless plug for our services. But, I'm not big on marketing and besides, I think you get the idea. But know that we're here to help if you are looking for some...

Follow Me on Twitter: <a href="https://twitter.com/StateDave">@StateDave</a>

-----------------------------

The opinions and forecasts expressed herein are those of Mr. David Moenning and may not actually come to pass. Mr. Moenning's opinions and viewpoints regarding the future of the markets should not be construed as recommendations. The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. One should always consult an investment professional before making any investment.

Hedge Funds

Financing

Events

Global

Economics

General

HDGE

SPXU

Will Cyprus Be The Trigger? (And Ways to Play the Coming Correction)

Shares of the following exchange traded funds are more than 15% higher than 90 days ago and trading within 9% of their 52-week highs.

Direxion Daily Healthcare Bull 3X Shares (NYSE: <a class="ticker" href="/stock/cure#NYSE">CURE</a>) is more than 26% higher year to date but trading about where it was a month ago. The nondiversified fund creates long positions by investing at least 80% of its net assets in the equity securities that comprise the Health Care Select Sector Index, or financial instruments that provide leveraged and unleveraged exposure to the index. These financial instruments include: futures contracts, swap agreements and short positions.

Direxion Daily Large Cap Bull 3X Shares (NYSE: <a class="ticker" href="/stock/bgu#NYSE">BGU</a>) is up more than 40% from the beginning of the year, including up almost 7% in the past week. The nondiversified fund creates long positions by investing at least 80% of its net assets in the equity securities that comprise the Russell 1000 Index, or financial instruments that provide leveraged and unleveraged exposure to the index. These financial instruments include: futures contracts, swap agreements and short positions.

Direxion Daily Real Estate Bull 3X Shares (NYSE: <a class="ticker" href="/stock/drn#NYSE">DRN</a>) is about 48% higher year to date, as well as up about 9% in the past week. The investment seeks daily investment results of 300% of the performance of the MSCI US REIT Index. The nondiversified fund normally creates long positions by investing at least 80% of its net assets in the equity securities that comprise the index, or financial instruments that provide leveraged and unleveraged exposure to the index.

See also: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/05/2547337/s-p-look-to-etfs-holding-multi-family-reits-vnq-icf-rez">S&amp;P: Look to ETFs Holding Multi-Family REITs</a>

ProShares Ultra Nasdaq Biotechnology (NASDAQ: <a class="ticker" href="/stock/bib#NASDAQ">BIB</a>) is up more than 42% year to date, including about 7% higher in the past week. This investment seeks daily investment results that correspond to twice (2x) the daily performance of the underlying index. The nondiversified fund concentrates its investments in a particular industry or group of industries to approximately the same extent as the index. Alexion Pharmaceuticals (NASDAQ: <a class="ticker" href="/stock/alxn#NASDAQ">ALXN</a>) is one top holding.

ProShares UltraPro QQQ (NASDAQ: <a class="ticker" href="/stock/tqqq#NASDAQ">TQQQ</a>) is up more than 69% since the beginning of the year, including about 10% in the past week. The investment seeks daily investment results that correspond to three times (3x) the daily performance of the underlying index. Assets of the fund not invested in equity securities or derivatives typically are held in money market instruments. Top holdings include Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>) and Google (NASDAQ: <a class="ticker" href="/stock/goog#NASDAQ">GOOG</a>).

ProShares UltraPro S&amp;P 500 (NYSE: <a class="ticker" href="/stock/upro#NYSE">UPRO</a>) is up more than 40% since the beginning of the year, including rising more than 7% in the past week. This investment seeks daily investment results that correspond to three times (3x) the daily performance of the underlying index. The nondiversified fund concentrates its investments in a particular industry or group of industries to approximately the same extent as the index. Apple and Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) are top holdings.

See also: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2538130/etfs-for-sell-in-may-and-go-away-part-ii-fbt-xlu-soxs">ETFs to Sell in May and Go Away</a>

ProShares Ultra Russell 1000 Growth (NYSE: <a class="ticker" href="/stock/ukf#NYSE">UKF</a>) is more than 30% higher since the beginning of the year and trading near the 52-week high. This investment seeks daily investment results that correspond to twice (2x) the daily performance of the underlying index. The nondiversified fund concentrates its investments in a particular industry or group of industries to approximately the same extent as the index. Top holdings include Apple, Exxon and IBM (NYSE: <a class="ticker" href="/stock/ibm#NYSE">IBM</a>).

ProShares Ultra Technology (NYSE: <a class="ticker" href="/stock/rom#NYSE">ROM</a>) is more than 40% higher year to date, despite pulling back about 5% in the past month. The investment seeks daily investment results that correspond to twice (2x) the daily performance of the underlying index. Assets of this nondiversified fund not invested in equity securities or derivatives typically are held in money market instruments. Top holdings include Apple, IBM, Google and Intel (NASDAQ: <a class="ticker" href="/stock/intc#NASDAQ">INTC</a>).

Teucrium Soybean (NYSE: <a class="ticker" href="/stock/soyb#NYSE">SOYB</a>) is trading about 15% higher than three months ago. The investment seeks to have the daily changes in percentage terms of the funds NAV per share reflect the daily changes in percentage terms of a weighted average of the closing settlement prices for the three soybean futures contracts. The fund invests normally in Benchmark Component Futures Contracts or in other Soybean Futures Contracts trade on the CBOT or on foreign exchange.

<div id="action-items">ACTION ITEMS:

Bullish: Investors may also want to consider the following trades: 

<ul><li>ProShares Short VIX Short-Term Futures ETF (NYSE: <a class="ticker" href="/stock/svxy#NYSE">SVXY</a>) is almost 88% higher year to date.</li>
<li>UBS E-TRACS Daily Short 2-Month S&amp;P 500 VIX Futures ETN (NYSE: <a class="ticker" href="/stock/bbvx#NYSE">BBVX</a>) is more than 49% higher year to date.</li>
<li>iPath Inverse S&amp;P 500 VIX Short-Term Futures ETN II (NYSE: <a class="ticker" href="/stock/ivop#NYSE">IVOP</a>) is about 44% higher year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions in stocks:

<ul><li>Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) is up almost 44% year to date.</li>
<li>Alexion Pharmaceuticals (NYSE: <a class="ticker" href="/stock/alxn#NYSE">ALXN</a>) is up more than 28% year to date.</li>
<li>Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>) is up more than 24% year to date.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Long Ideas

Short Ideas

ALXN

BBVX

CURE

Direxion Daily Real Estate Bull 3x Shares

INTC

IVOP

MSFT

SOYB

SVXY

Nine ETFs on a Roll (DRN, TQQQ, BIB, BGU)

CME - S&amp;P 500 INDEX CASH– (JUNE) Daily
Near Term Trend: Positive to Neutral
Wednesday's Close: 1385.14 (- 5.70)

Ways to Play this: 


<ul><li>SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>)</li>
<li>ProShares Ultra S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sso#NYSE">SSO</a>)</li>
<li>ProShares UltraShort S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>)</li>
<li>ProShares UltraPro S&amp;P 500 (NYSE: <a class="ticker" href="/stock/upro#NYSE">UPRO</a>)</li></ul>

<img src="/files/images/2012/April/19/sp1.png" width="644" height="316" alt="sp1.png" />
 
UPDATE: Four weeks ago, we stated, “If the market approaches the 1410.00 region I would expect that area to be the upper limit of this move, and a retrace toward 1360.00 to follow”. 

Subsequently, the market collapsed once it hit just above 1410.00, and then retraced down to 1358.00, before bouncing higher.

We have been pretty much spot- on. In addition, I stated I would short the Index on a daily close below 1388.00- not before.

We did that on April 9th as the market settled at 1382.00. We are currently short with a daily stop close only at 1402.40. 

<img src="/files/images/2012/April/19/oil1.png" width="644" height="316" alt="oil1.png" />

NYMEX - CRUDE OIL (June) - Daily
Near Term Trend: Neutral to Negative
Wednesday's Close: $103.36 (+ $.24 cents)
 
Ways to Play – SPDR Gold TRUST (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>)
 
UPDATE: Over six weeks ago, we were clear in stating, “We still believe since a weekly settlement above $108.40 has not been posted we could see Crude retrace back toward $100.00”.
 
The price retraced to a low of $101.22, last week. 
 
Although a bounce above $105.00 took place three days ago, this market is still struggling for now. 

<img src="/files/images/2012/April/19/gold1.png" width="644" height="316" alt="gold1.png" />

NYMEX - GOLD – Daily
Near Term Trend: Negative
Wednesday's Trade: $1,642.10 (+ $3.30)
 
Ways to trade - United States Oil Fund (NYSE: <a class="ticker" href="/stock/uso#NYSE">USO</a>)
 
UPDATE: Six weeks ago, as the market was trading near $1,710.00, we stated, “Overhead at $1,740.00 could hold, as the market could continue to retrace toward $1,635.00”. Since then, the low has been $1,612.40.

Three weeks ago, we clearly stated, “The challenge will be near term resistance at current levels, up to $1,694.00- resistance at the blue M.A. Line”. We were on point as the high following that statement was $1,697.00, as the market stalled and was hammered once again. &amp; volatility has died. support $1,600.00 is key
 


Editor's Note: Article and charts provided by Chart Lab Pro. Sign up for your FREE 30 day FREE Trial, use the promo code: Chartp2p8i. "The best automated platform for all level investors: <a href="http://www.chartlabpro.com">www.Chartlabpro.com</a>"

Commodities

Weekly S&P 500, Gold, and Oil Trends (USO, GLD, SPY)

We called 1275, don't get emotional. 
This past Tuesday we got news that the EcoFin (Finance Ministers) meeting was canceled for Wednesday. Then we find out from CNBC's Steve Liesman that the Ecofin meeting was actually never needed. Then it is reported, they will meet after the summit of EU leaders on Wednesday. Mid-Day Tuesday while the S&amp;P 500 was down 16 to 20 points trading in the 1230 to 1238 range, we told our readers to look for 1275 in the short term and don't fear the EU noise. This noise can make anyone insane. We told readers and members to stay the course for now and look for 1275 before reducing long positions and 1300 before selling more.
Last week, we put out an article on where we thought the S&amp;P 500 was going and the relationship between human behavior and historical price action. If you are a current reader of our publication or FREE news letter, you will recall, we were calling for 1255 on Monday the 17th with a potential parabolic move to 1300. This weekend we updated our price objective and stated we are looking for 1275 and if reached we are looking to reduce 20% of our long positions. This has been a sharp incline and would only be prudent to raise some cash at 1275.
Many of our trading and investment peers have repeatedly been non-believers in this 180 point rally off the intra-day low in the S&amp;P 500. DO NOT GET EMOTIONAL, if you are investing, emotions need to be removed from the equation. Whether the bears are right about the global fundamentals and the EU being a complete house of cards, it is irrelevant to the short term price action.
We believe this rally is purely constructed on human behavior – behavioral finance. You can see from the chart above the natural progression of human behavior in the markets: you have a cycle led by optimism, excitement, relief, anxiety, denial, panic, maximum amount of pain, and lastly, optimism. 
These human behaviors are purely based on primal survival instincts. Our theory is that we are approaching the excitement/relief phase with a now EU resolution. We will see the anxiety phase once the market questions the validity of the EU backstop package. 
So here we are, two days later hitting our price objective. For our readers, our S&amp;P 500 market call proved to be valuable. Our members received our 1275 price alert over a week ago. We also told readers to reduce some risk at 1275 in the short term. On Saturday, we told long term investors we were looking for 1300 in the short term (1 to 3 weeks) with a parabolic move. We have remained bullish since we told our members to get long the S&amp;P 500 On Sunday October 2nd at 1090. At this juncture, it would be prudent to take some profits if you caught this rally. Look to reduce risk at 1275 and 1300.
So why have we been bullish? Last week in our article, "Where is the market heading?", we demonstrated our theory on behavioral finance when applied to the current S&amp;P price action. Below is the chart we demonstrated this theory.
For our FREE S&amp;P 500 News letter visit <a href="http://www.thechartlab.com" title="www.thechartlab.com">www.thechartlab.com</a>

Intraday Update

We called 1275, don't get emotional. 

Above my desk I have a big sign that says “<a href="http://www.minyanville.com/businessmarkets/articles/precious-metals-gold-prices-silver-prices/7/25/2011/id/35921#disqus_thread">the market will always do</a> what the market has always done, misdirect, confuse and confound.” The way the <a href="http://seekingalpha.com/article/301312-s-p-500-s-friday-gain-makes-a-positive-week">S&amp;P</a>has been behaving since August is proof perfect that this slogan is as true as ever.

	 

	For those of you not conversant with the <a href="http://www.proshares.com/funds/">Ultra Pro Shares</a> ETFs Pro Shares Ultra Pro S&amp;P 500   <a href="http://seekingalpha.com/article/188253-look-out-direxion-proshares-launches-line-of-3x-leverage-and-inverse-etfs">(UPRO</a>) is a triple leveraged fund that seeks a 300% return on the performance of the S&amp;P for a single day. Conversely, The Pro Shares Ultra Pro Short S&amp;P 500 (<a href="http://www.dailyfinance.com/quote/nyse/proshares-ultrapro-short-sp-500/spxu">SPXU</a>) seeks a triple leverage or 300% return on the inverse performance of the S&amp;P 500. 

	For those of you that read me on a regular basis you know that I was certain back in August that the S&amp;P would break the support line of 1100 and from there would go to 1050 / 1020 and if things got very tight it would go to 960.

	 

	On October 3rd I was sure that I would be right as I watched the S&amp;P break the 1100 support and hit an intraday low of 1078 before closing at 1100. One or two more days of trading below 1100 would confirm my thesis and I would add to my already overweight position of SPXU. Well I was wrong. Two days at 1100 on the S&amp;P and it began its march up and I was forced to sell at about 1140 and admit that I had been fooled again. Let’s take a look at the chart below.

	 

	<img src="http://dl.dropbox.com/u/20855171/S%26P%20500%2010-23-11.png" alt="S%26P%20500%2010-23-11.png" />
	 

	As this chart will show the S&amp;P kept its march up and about two weeks ago it formed a consolidation area between 1200 and 1220. There it remained for several weeks. The S&amp;P attempted to continue to <a href="http://www.investopedia.com/terms/c/consolidation.asp#axzz1bdKka7oW">consolidate</a> last week as it traded sideways in the $1200-$1220 range. On Friday the S&amp;P 500 closed the week out at the highest prices it has seen since the decline that began in August. Buyers, however, remained impatient and only allowed a week or two of rest. This is a good show of strength as the S&amp;P could have easily experienced a deeper pullback and still remained healthy. While I believe the S&amp;P will need to take a more extended breather, (especially with the uncertainty from Europe) it may make a run towards $1260-$1270.

	 

	This is a key level to watch in the near term as it marks a prior support level from June and the approximate area of the 200-day moving average. If it breaks through the 200 DMA we will rally to the end of the year. While S&amp;P still has plenty of overhead <a href="http://www.investopedia.com/terms/r/resistance.asp#axzz1bdKka7oW">resistance</a>, the rally from its recent lows has been staggering.

	 

	In conclusion, I think that Fridays rally to 1138 was less of a rally and more of a short covering. I expect to see a pullback to the 1220 level today but there are other factors involved.

	 

	According to the <a href="http://online.wsj.com/article/SB126832878888060011.html">Wall Street Journal</a>, European leaders are nearing agreement on a plan that would see the region's banks raise around €100 billion ($139 billion) in fresh capital, said three people familiar with marathon talks taking place here on Sunday.

	 

	I must interject that the great <a href="http://seekingalpha.com/instablog/271099-nathaniel-crawford/60389-lessons-from-jesse-livermore">Jesse Livermore</a> taught us that it is not the news that means anything it is how the market reacts to the news that is important.

	 

	The bank-recapitalization plan is the easiest piece of a three-pronged bargain that the <a href="http://seekingalpha.com/article/277168-applying-the-mankiw-rule-to-the-eurozone">17 euro-zone nations</a> are hoping to reach during meetings that began Sunday and will continue through at least Wednesday. There remain disagreements on the other two measures—steps to boost the firepower of the bloc's €440 billion bailout fund and, critically, to deal with Greece's spiraling public debt through a complex restructuring.

	 

	German Chancellor <a href="http://seekingalpha.com/article/301319-price-action-sentiment-favor-bulls-but-what-if-something-goes-wrong">Angela Merkel</a>, left, walks with IMF Managing Director Christine Lagarde, center, and <a href="http://seekingalpha.com/article/297946-ecb-rate-decision-brings-currencyshares-euro-etf-into-focus">ECB</a><a href="http://seekingalpha.com/article/301319-price-action-sentiment-favor-bulls-but-what-if-something-goes-wrong">President Jean-Claude Trichet</a> during a roundtable meeting of euro-zone members at an <a href="http://seekingalpha.com/currents/post/97144">EU summit in Brussels</a> on Sunday.

	European Union finance ministers discussed the bank plan during a 10-hour session on Saturday. <a href="http://seekingalpha.com/article/164956-sweden-prepares-for-financial-collapse-in-latvia-major-bank-losses-at-home">Swedish Finance Minister Anders Borg</a> said on his way out of the meeting they had agreed to the foundations of a plan. Today will be a very interesting day.

As The S&P Goes - So Goes SPXU and UPRO

The purpose of this Q&amp;A is to offer a brief overview of Exchange Traded Funds so that you can gain a better understanding of these investment products and learn how to profit from them.

What is an ETF?

An ETF is an investment fund traded on a stock exchange. The fund can be invested in equities, currencies, bonds, commodities, derivatives, swaps, futures contracts, etc. Purchasing an ETF entitles you to participate in profits if the holdings increase in value, or to realize a loss if the holdings decrease in value. An ETF is open to any investor that has access to buy and sell stocks through any licensed brokerage account. 

What determines the value of an ETF?

The value of every ETF will always correspond to the value of its holdings, which constantly fluctuate. For example, the SPDR Gold Trust ETF (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) is an ETF that holds bricks of gold, which are stored in a secret warehouse somewhere in London. If the price of physical gold were to increase throughout the day, the bricks of gold held by the ETF managers are now more valuable, resulting in an increase in the ETF share price. 

What is an "Index ETF"?

An Index ETF is a fund that attempts to duplicate performance of a particular index by investing in the exact holdings, in the exact same proportions, as the underlying entity (referred to as "replication").

The most actively traded ETF is the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>). As outlined above, the fund holds all 500 securities in the exact same proportions as the underlying Standard and Poor's 500 Index. If the S&amp;P 500 index falls by 1.25% in any given day, it is reasonable to assume that SPY will lose approximately the same value.

Most, if not all, indexes are investable through their corresponding ETF. For example, the Financial Select SPDR Fund (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>) is designed to seek investment objectives that correspond to the returns of the Financial Select Sector Index. 

What is an inverse ETF?

An inverse ETF is designed to provide investors with the opposite return of an index or commodity. For example, the investment objective of the ProShares Short Dow 30 (NYSE: <a class="ticker" href="/stock/dog#NYSE">DOG</a>) is to provide an return that is equal to the inverse of the performance of the Dow Jones Industrial Average. If the Dow were to drop 2.4%, it is very reasonable to assume that DOG would gain 2.4% in value. Likewise, if the Dow were to gain 2.4%, assume that DOG would lose 2.4% of its value.

What is a leveraged ETF?

A leveraged ETF is designed to magnify the performance of the underlying index through the use of complex swaps. A leveraged ETF can provide a return equal to two or three times the performance of the underlying index. For example, the ProShares UltraPro S&amp;P 500 (NYSE: <a class="ticker" href="/stock/upro#NYSE">UPRO</a>) ETF is designed to achieve a return of approximately 300% of the S&amp;P 500 index. If the index were to gain 1.5%, it is reasonable to expect UPRO to gain 4.5%.

There are also ETFs which provide a leveraged inverse. The ProShares UltraShort S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spxu#NYSE">SPXU</a>) ETF is designed to achieve a return of approximately 300% of the inverse of the S&amp;P 500 index. If the index were to gain 1.5%, it is reasonable to expect the ETF to lose 4.5%. 

What advantages do ETF's offer?

 •	 ETFs can be easily bought and sold. ETFs offer investors the ability to buy or sell their holdings almost instantly, whereas mutual fund transactions take quite a bit of time to close (generally end of the day). That liquidity is a major benefit considering the extreme amount of volatility the market has experienced over the past few years.

•	ETFs offer significant tax advantages over mutual funds. When an investor has a gain in an ETF, he/she is not taxed until the product is sold, allowing for the investor to hold onto that gain until the closing transaction. Mutual funds, on the other hand, impose a tax for every realized gain. For example, when a fund manager makes a profitable trade, the gains are passed on to the investor along with the tax. 

 •	Modern ETFs offer exposure to products that traditionally have not been available to common investors (or too expensive), such as corn (Teucrium Corn Fund ETF: (NYSE: <a class="ticker" href="/stock/corn#NYSE">CORN</a>))

 •	ETFs can be used to gain exposure to international markets. For example, one could invest in Brazil via the iShares MSCI Brazil ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>).

Why is it widely discouraged to hold leveraged ETFs for more than one day?

Leveraged ETFs are re-balanced daily, meaning that the holdings can fluctuate greatly from one day to the next. Leveraged ETFs also continuously lose value due to compounding.

 Let us take a look at the mathematics behind this using a made up ETF (XXX), which trades at $10.00. This ETF is designed to offer 3x leverage to its underlying index (XXXa), which is valued at 1,000. After one day of trading, the index gains 40 points (4%) and the ETF accordingly rises 12% to close at $11.20. The next day, the index loses the previous gain of 40 points and closes back at 1,000. This 40 point drop corresponds to 3.85%. As a result, the ETF loses 11.55% and will close at $9.91. As you can see, even though the index has retained the same value, the ETF has not. 

Does an ETF stay close to its "true value"?

For the most part, yes it does. Keep in mind that the assets being held in the ETF have a value that can be determined. If an ETF is undervalued, sophisticated traders with advanced analytic equipment will buy the ETF at its discounted price, thus pushing the value closer to its "true range". This type of trading is known as "ETF arbitrage." Sophisticated trading machines are constantly scanning the market for such opportunities, making it rare for an ETF to deviate more than 0.5% away from its "true value" for a prolonged period of time.

How popular are ETFs?

Over the past few years, ETFs have exploded in both volume and popularity. The increase in investor interest has led to the creation of a seemingly endless number ETF funds.

The ten most popular ETFs in terms of trading volume in the market currently are:

1) SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>)

2) Financial Select SPDR (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>)

3) PowerShares QQQ Trust (NASDAQ: <a class="ticker" href="/stock/qqq#NASDAQ">QQQ</a>)

4) iShares Russell 2000 Index Fund (NYSE: <a class="ticker" href="/stock/iwm#NYSE">IWM</a>)

5) iShares MSCI Emerging Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>)

6) Direxion Financial Bull 3x Shares (NYSE: <a class="ticker" href="/stock/fas#NYSE">FAS</a>)

7) ProShares UltraShort S&amp;P 500 (NYSE: <a class="ticker" href="/stock/sds#NYSE">SDS</a>)

8) iPath S&amp;P 500 VIX Short-Term Futures ETN (NYSE: <a class="ticker" href="/stock/vxx#NYSE">VXX</a>)

9) iShares Silver Trust (NYSE: <a class="ticker" href="/stock/slv#NYSE">SLV</a>)

10) Vanguard MSCI Emerging Markets (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>)
 

Is an ETF a suitable investment for everyone?

Yes and no. Many ETFs are simple to understand and provide great investment opportunities, however leveraged ETFs are designed specifically for investors with advanced knowledge since the funds hold complex derivatives and forward swaps. 

There are countless ETFs in the market to choose from, ranging from very common to very strange. Before making any trade, it is prudent to know exactly what you are buying (or selling) – so do your research. As always, potential investors should exercise caution and consult with experts whenever necessary.

Financial Advisors

New ETFs

Emerging Market ETFs

Currency ETFs

CORN

Barclays Bank iPath S&P 500 VIX Short-Term Futures ETN

Beginner's Guide to Understanding ETFs

뉴욕 증권 거래소(NYSE)의 여러 주식들은 <a href="https://www.benzinga.com/topic/nyse">기술적 문제</a>로 인해 월요일 동부 표준시 오전 9시 40분 이후 갑자기 거래가 중단되었다.
이번 예상치 못한 거래 중단은 일반적으로 단일 주식의 과도한 변동성을 억제하는 데 사용되는 &#8220;상향 한도(Limit Up)/하향 한도(Limit Down)&#8221; 코드로 분류된 기술적 문제로 인해 촉발되었다.
NYSE는 보고된 기술적 문제를 조사 중이라고 밝혔다. NYSE 소유주인 인터콘티넨탈 익스체인지(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICE#NYSE">ICE</a>)는 &#8220;추가 정보가 최대한 빨리 나올 것&#8221;이라고 밝혔다.
월요일에 급작스러운 거래 일시 중단을 당한 대기업들 중 일부는 동부 시간 오전 9시 50분 52초에 버크셔 해서웨이(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>)와 9시 44분 58초에 치폴레 멕시칸 그릴(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>)이 포함됐다.
치폴레의 주가는 3,097달러에서 1,047달러로 66%의 갑작스럽고 극적인 하락을 경험했다. 해당 주식은 오전 10시 21분부터 거래를 재개했다.
오전 9시 49분, 워런 버핏이 소유한 버크셔 해서웨이의 주식은 훨씬 더 심각한 하락에 직면했다. 주가는 622,375달러에서 185.10달러로 99.7%라는 엄청난 폭락으로 거의 소멸될 뻔했다.
월요일의 NYSE 기술적 오작동은 미국 증권 거래소가 <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39039375/t-1-settlement-era-on-trading-begins-what-you-need-to-know">1일 결제 기간</a>으로 전환된 지 불과 일주일 만에 발생했다.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" class="wp-image-368052" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-1024x500.png" sizes="(max-width: 1024px) 100vw, 1024px" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03101722/image-4.png 1920w" alt="" width="1024" height="500" /></figure>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" class="wp-image-368067" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-1024x500.png" sizes="(max-width: 1024px) 100vw, 1024px" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/03102012/image-5.png 1920w" alt="" width="1024" height="500" /></figure>
<h3 class="wp-block-heading">다른 영향을 받은 주식들</h3>
월요일 뉴욕 증권거래소에서 일어난 급작스럽게 발생한 기술적 오류로 인해 영향을 받은 다른 주식들은 다음과 같다.
<ul>
<li>애벗 래버러토리스 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>)</li>
<li>배릭 골드 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOLD#NYSE">GOLD</a>)</li>
<li>프랑코 네바다 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNV#NYSE">FNV</a>)</li>
<li>에섹스 프로퍼티 트러스트 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>)</li>
<li>누스케일 파워 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMR#NYSE">SMR</a>)</li>
<li>데스티니 테크 100 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXYZ#NYSE">DXYZ</a>)</li>
<li>알트 디스럽티브 테크놀로지스 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADRT#NYSE">ADRT</a>)</li>
<li>누보 몽드 그래파이트 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NMG#NYSE">NMG</a>)</li>
<li>보우헤드 스페셜티 홀딩스 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOW#NYSE">BOW</a>)</li>
<li>방코 산탄데르-칠레 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSAC#NYSE">BSAC</a>)</li>
<li>로지스틱 프로퍼티 오브 더 아메리카스 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPA#NYSE">LPA</a>)</li>
<li>엑스페리 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPER#NYSE">XPER</a>)</li>
<li>ICL 그룹 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICL#NYSE">ICL</a>)</li>
<li>텔레포니카 S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEF#NYSE">TEF</a>)</li>
<li>트리니티 인더스트리즈 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRN#NYSE">TRN</a>)</li>
</ul>
이 기술적인 문제는 다음 NYSE-Arca 상장 상장지수펀드(ETF)의 거래에도 영향을 미쳤다.
<ul>
<li>Direxion Daily Aerospace &amp; Defense Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFEN#NYSE">DFEN</a>)</li>
<li>MAX S&amp;P 500 4x Leveraged ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPRO#NYSE">UPRO</a>)</li>
<li>JPMorgan Core Plus Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JCPB#NYSE">JCPB</a>)</li>
<li>Global X MSCI Argentina ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARGT#NYSE">ARGT</a>)</li>
<li>Nationwide Nasdaq-100 Risk-Managed Income ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUSI#NYSE">NUSI</a>)</li>
<li>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>)</li>
</ul>
또한 읽기: <a href="https://www.benzinga.com/news/24/06/39136240/koss-corp-tupperware-blackberry-shares-are-moving-monday-whats-going-on">코스, 타파웨어, 블랙베리 주식의 움직임: 무슨 일이?</a>
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