YINN - YINN: Swing-Trading Tool For The Pros
2024-06-21 08:00:00 ET
Summary
- The Direxion Daily FTSE China Bull 3X Shares ETF provides 300% exposure to the daily returns of Chinese equities.
- YINN ETF experienced massive gains in the past few months due to the 'positive convexity' from its leveraged positions.
- Looking forward, I remain optimistic about Chinese equities as the Chinese government continues to implement stimulative policies.
- However, leverage is a double-edged sword that should be wielded carefully. For most investors, I recommend they stay away from YINN.
Markets have an uncanny way of making even the best analysts look foolish, and I certainly looked foolish when I warned investors against buying the Direxion Daily FTSE China Bull 3X Shares ETF ( YINN ) just before a massive rally (Figure 1).
Figure 1 - YINN has experienced a massive rally since January (Seeking Alpha)
What caused the run-up in YINN shares in the past few months, and is there another leg coming in the China trade?...
YINN: Swing-Trading Tool For The Pros