Omicron variant boosts this leveraged biotech ETF
TThe Omicron variant has reaffirmed the strength of biotech stocks, making Direxion Daily S&P Biotech Bull 3x Actions (LABU) an option for traders.
As investors increased the number of risks, cases of COVID-19 increased towards the end of the year, and now with the new variant, they may offer an attractive option for a short-term pop.
“Like it or not, biotech stocks are becoming an increasingly viable game in the stock market today,” said a StockMarket.com article published on the Nasdaq.
“Overall, this remains the case as the current coronavirus pandemic has started a fire under the industry,” the article adds. âNamely, both seasoned and new investors have likely learned more about how biotech companies work. For this reason, some of the best biotechnology stocks around would stay in focus now. Given the latest developments regarding the Omicron variant of the coronavirus, investors may not want to overlook the industry now. “
LABU seeks daily investment results equal to 300% of the daily performance of the S&P Biotechnology Select Industry Index. The fund invests at least 80% of its net assets in financial instruments and index securities, ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index.
A health care option
Another option that traders can consider is the Direxion Daily Healthcare Bull 3X ETF (CURE), which targets daily investment results equal to 300% of the daily performance of the Health Care Select Sector Index. The fund obtains this exposure by investing at least 80% of its net assets in financial instruments, such as swap agreements, index securities, ETFs that track the index and other financial instruments that offer a Daily leveraged exposure to the index or ETFs. that follow the clue.
The index includes national companies in the health sector, which includes pharmaceuticals, health care equipment and supplies; health care providers and services; biotechnology; life science tools and services; and more. These sub-industries have all been affected by the pandemic in one way or another, providing traders with dynamic opportunities to play in the market.
Up 63% for the year, bulls have been on the safe side of health trading in 2021. In terms of technical trading, both short and long term dynamics are strengthening with the 50 day and 200 move. days. averages in uptrends.
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