Benzinga
Published May 13, 2022 19:55
Updated May 13, 2022 20:41
Is This Homebuilding ETF (NAIL) Ready To Reverse Course?
Direxion Daily Homebuilders & Supplies Bull 3X Shares (NYSE: NAIL) was spiking up almost 7% higher on Friday, in an attempt to reverse course from its most recent downtrend, which began on May 4.
NAIL is a triple leveraged fund that is designed to outperform 52 U.S. companies in the home construction sector that are trading on the Dow Jones. The index includes a variety of companies from home construction firms, interior furnishings to home improvement retailers, building material manufacturers and suppliers.
Some of the more familiar names in the ETF include Home Depot , Inc (NYSE: NYSE:HD), weighted at 3.55%, Lowe’s Companies, Inc (NYSE: LOW), weighted at 3.29% and Builders FirstSource, Inc (NYSE: BLDR), which is weighted at 1.68% within the ETF.
It should be noted that leveraged ETFs are meant to be used as a trading vehicle as opposed to a long-term investment.
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The NAIL Chart: NAIL officially fell into a bear cycle at the end of February when the 50-day simple moving average (SMA) crossed below the 200-day SMA, which created a death cross to occur on the ETF’s chart. The ETF has been trading in a fairly consistent downtrend since reaching a new all-time high of $127.84 on Dec. 13, 2021, however, which was caused by a negative sentiment shift in the homebuilding and supply sector.
See Also: How to Read Candlestick Charts for Beginners
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