ERX: Stay Away

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About: Direxion Daily Energy Bull 3x Shares ETF (ERX), Includes: CVX
by: The Value Trend
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The Value Trend
Value, Growth At Reasonable Price, long-term horizon
Summary

ERX is 100% focused on the energy sector and uses leverage to double the returns of the Energy Select Sector Index.

The energy sector is facing both short- and long-term headwinds.

Due to the risk and state of the energy sector, I don't rate this ETF a buy.

Thesis Summary

The Direxion Daily Energy Bull 3x Shares ETF (ERX) seeks to track 3x the daily performance of the Energy Select Sector Index and consists of domestic energy companies from the oil,