$Direxion Daily Regional Banks Bull 3X Shares ETF (DPST.US)$...
$Direxion Daily Regional Banks Bull 3X Shares ETF(DPST.US$ I wanted to do a quick update for everybody hopefully nobody jumped in yesterday or this morning for that matter. consumer prices obviously shook the whole marketplace and what it means is interest rates you can pretty much forget June and probably August at this point and we may not get any rate cuts this year and what they did in a nutshell is take every interest rate sensitive stock outside behind the barn and shoot it. so regional Banks the reason why they collapse last year was because of silicon valley and then they discovered these bobbleheads that they invested long and they're having to pay short much higher rates and then the compounding effect for the industry are commercial loans we're a trillion plus dollars are going to be coming to over the next 24 months. that's why they lagged the reason for this rally that we've experienced is the anticipation that rates would be coming down initially this year it was six rate cuts and then four rate cuts and then three and that's what chairman Powell said but now we're probably down to one or none. so you will be here in tonight tomorrow all these self-procling experts that didn't have the balls to go short talking about the risks that exist within the regional Banks. pt 1 of many
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10baggerbammOP : the risk today are no greater than the risks that existed two days ago or a month ago the regional banks have already gone through fourth quarter earnings and aside from the disaster that sent it in New York community Bank all of them did relatively well some of them did exceptionally well when it comes to earnings in the reserve ratios. getting back to this leveraged ETF we broke through support slightly on the daily chart right around 62 and a half dollars it could depending upon PPI tomorrow continue to about 58. I would use 58-59 as an entry point but only use half of what you traded in the past so whatever dollar amount use half. the reason is quite simple this might take a little bit longer to reverse than the last trade. additionally Friday we have two major Banks coming out with earnings that are going to set the tone I'm sure the world's going to be glued listening to Jamie Diamond and then on Monday we have Goldman so it's possible that we could have a pullback based off of the earnings of these companies and if they sell off you're going to see a sell-off with the regional Bank ETF I think you could see an absolute worst case of $48 in a bloodbath sell-off. that's where if it happens I would use the second half of your money to buy into average your cost basis down and if you did not buy in because your money was allotted to other investments and you finally freed it up when it was around the 48-49 then you're fortunate because you're going to have tremendous upside.
10baggerbammOP : the Target on this trade would be 70 to $72 it will not be as fast as the prior trade so this may require a little bit more patience in light of the CPI numbers that came out today and possibly PPI and Bank earnings on Friday and Monday but I believe the investors will be rewarded in this trade and I will be buying right alongside at those price points