Experts Please Chart DFEN
I occasionally come across stock that I find repulsive because of the companies it represents, and yet appealing for reasons of the political climate, specifically the coming wars. I’m up about 10% having got in the middle of June when it hit a major bottom. Every analysis I’ve read about this 3X stock is negative. So many hate it, that it seems like the ultimate contrarian play, and, yet, for reasons I mentioned, maybe not. It has strange swings as well, but if I got in near what seems like major bottom then those swings won’t bother me. I request please that someone, maybe Fully, chart this and maybe offer an opinion. Before the COVID crash in 2020, it hit over $60. After the devastating drop, it’s actually been slowly moving up.
All the 3x funds behave this way.
If and when the underlying (eg, ITA) recovers, the 3x long fund may not if the rebound advance isn’t as direct as the decline. Which it hasn’t been.
This has been a labored advance for DFEN, very overlapping.
EWers know what that means.
More broadly, the decline for the mkt since Jan has also been corrective, and now, so is the advance. Its a traders/scalpers market. Its not a recipe for INVESTING or even position traders.
And there are ‘cleaner’ 3x and -3x funds into which to throw your chips, IMO.
If you are looking for lottos, my chart (for ITA) has three instances satisfying my longer term OS conditions … mid Sept 21, end Nov, mid May, mid June — and advances followed each but halting. At a minimum, concentrate your buys after some blood is spilling. And IMO, its a liquidity game not a narrative game.
Thank you so much Pedro!! Exactly the kind of analysis I was looking for.
Could you suggest a few 3X funds cleaner than DFEN.
not much is clean…this one darn nasty
NAIL was good since the beginning of the rates pullback.
Otherwise, as I said, the advance has been choppy and for most all.
The stairs not the elevator. In slinky fashion.
Again, thanks for any advice. I like your comments and analysis on this forum. They’re always fascinating.