Direxion Daily Russia Bull 3X Shares (RUSL)

[alphamaker]

CL bounced off of $60.00. Now down to $59.00. Likely took out a bunch of stops.

[Rock_nj]

RUSL hit $4 at the close. What a train wreck the Russian economy is. Stagflation is coming to Russia, no growth and high inflation. It's going to get worse before it gets better.

[sumotrader]

Tough call. Given the current implosion of the Ruble and economy in Russia I would say RUSL never sees (the pre-split equivalent of) 11.00 again.

It should get a technical bounce in the next 3-4 trading days but the daily RSI will likely hit 15 before it happens. Just my opinion of course.

It won't help you now but in the future I would consider the following strategy with 3X ETF's:

Say you buy RUSL at 10.00 expecting a reversal but it continues down. Consider buying the inverse fund (in this case RUSS) as well until a reversal is confirmed and then dump RUSS and load more RUSL. Averaging down when the RSI is above 20 is very dangerous.

Good luck J44, hope this reverses hard for you.

I'm in RUSL with an average of 4.65 and I'm getting killed but I bought RUSS as well at the open to offset any further losses until this turns around.

[J44]

I see. But this onslaught must lead to some sort of bounce no? Waiting for that before I cut the cord

[crapinyourpants]

I think your chances are on the order of a lottery ticket.

As others have alluded to, the only reasonable time to buy into these leveraged bull ETFs is when there is a confirmed uptrend. Otherwise, with the ability to inverse split whenever, the falling knife is falling in an infinite pit. And the only reasonable holding time is 0 to 3 days.

[J44]

My average is 11. What are your thoughts? Will I be able to break even at some point with the reverse split ?

[crapinyourpants]

Well the central bank raised rates to 10.5 as expected (though not as much as some have expected). They warned of worsening financials.

I think Russia is in a vicious cycle now--the worsening environment leads to a brain drain, which reduces the resources to diversify the economy. The xenophobic stance also doesn't bring in new blood/investments. China will not be their saviour.

The closest parallel I can think of is South Africa (another natural resources rich country) during Apartheid where embargos led to white flight. However, the government there was determined to be independent and thus invested heavily in infrastructure/technology. The climate and English proficiency in South Africa also helped it retain some of the population, and after Apartheid, promoted a quick turnaround in investment and tourism.

The share price of this issue does not obey on technicals alone; I think the underlying fundamentals will be the primary driver. And it all looks very grim. Russian leadership needs to not be so proud and live in the romantic past, or this downturn will be even more prolonged.

[thetruthch]

Hoping we will see green today, so far this whole russian situation is killing us

[MoneyBags77]

waiting for a greeny candle light to play

[MoneyBags77]

No buy yet comrade

[thetruthch]

It does appear to be the bottom, i've been buying down since mid 6's. Going to continue to hold as we all know, these can have massive runs over a few days, so getting back to double digits isn't to far out of the realm of possibilities. That's what I am waiting for!

[J44]

If my average is 11. Is it okay to hold this long term? Thought is this is the bottom. I realize there is a reverse split, but that doesn't deter me as this reflects the RSX and that will have to go up eventually. Long term not a bad choice ?

[THREE-DAY-TRADER]

Thanks for the 'heads up'... however I'm not an investor. Just a quick short term trader. I've been in-out of RUSL (& RUSS) before on big dips. This is very trade-able. I understand the economics in Russia stink, but it has little affect on my quick trade strategy.
This fund will always have its technical bounces.

[crapinyourpants]

I work at a company that has interests/workforce in Russia. I can tell you that the political and business environment (not only in Russia but its neighbors as well) is deteriorating enough so that our company is taking actions to ameliorate the employees.

I would wait on any kind of investment in Russia since the situation is likely to get worse before improving.

[THREE-DAY-TRADER]

Looks like it may break under 5.00 today. I am probably going to start buying. This sell off is worse I've seen yet... so short term becoming way over done.

And yes it will rev split.
All you need to do is go here frequently & check for these things:
http://www.nasdaq.com/markets/upcoming-splits.aspx

(RUSL) 1 : 6 12/23/2014



Splits should not affect your choice to trade a 3x Fund:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108691510

"The rev split has no consequence, as this is not a regular type of stock. With a regular company I'd be concerned, but not this.
The 3x funds move each day same % regardless of split basis structure.
It is a major naivety the concern that always floats around every time a rev split occurs with these 3x funds. For short term swings, there is no consequence. The % moves same each day."

[Rock_nj]

I read somewhere that RUSL is going to reverse split soon. Is that true?

[thetruthch]

I agree, and us being in RUSL will make us big winners as well!

[Rock_nj]

Brutal sell-off in RUSL in 2014. Seems like big problems like ahead for the Russian economy, if oil prices continue to fall. RUSL could be a big winner once this all gets sorted out.

[thetruthch]

Should hopefully see an afternoon rally into close.

[thetruthch]

Hope everyone has a good weekend! And lets see, hopefully next week we will have an up week!

[thetruthch]

Nice bounce up from the one month, lets see and hope this rally will last for a few days!!

[sumotrader]

Set my stop for 6.80, let's see what happens.

RUSL

[thetruthch]

I agree, got in yesterday! looking good so far today!

[sumotrader]

Loaded more at 6.39, looking for a gap up tomorrow.

GL

[THREE-DAY-TRADER]

The rev split has no consequence, as this is not a regular type of stock. With a regular company I'd be concerned, but not this.
The 3x funds move each day same % regardless of split basis structure. FYI--- RUSL & the JNUG are doing them before X-Mas.
It is a major naivety the concern that always floats around every time a rev split occurs with these 3x funds. For short term swings, there is no consequence. The % moves same each day.
An example I always use is what happened with NUGT & DUST in Fall of 2013. They both did rev & fwd splits, which I successfully traded right thru, and hence the splits had no consequence. But back then msg boards were buzzing about fears of the splits.
Do yourself a favor, and focus simply on the funds underlying basis for doing short term trades, rather than the split issues.

That said, I would only trade quickly this fund, which is another factor that makes the rev split not a concern.
This is getting cheap in lower 6's. A rebound to 8-9 likely for quick trade, while not caring about a rev split later in the month (if I would be holding it during the effective date).

Happy trading))

[sumotrader]

RUSS within .60 of filling the last gap, scaling into RUSL today.

I'm not buying the positive Russian GDP numbers and low oil prices SHOULD BE devastating to their economy.

GL to all

EDIT- first buy at 6.34

[ShotMaker]

I think there has been news of a 1 for 6 R/S split sometime this month. I am not 100% sure of the details,...so I would investigate this, should you be considering a move here.

[THREE-DAY-TRADER]

RUSL finally getting to a point I like. 6's so far. A tremendous bounce play setting up here.

[THREE-DAY-TRADER]

Wow!! Is RUSS ever becoming a nice opportunity again (for short term trade). Hitting new lows, 7's so far. Very close to buying some as soon as today

[THREE-DAY-TRADER]

Russia & Brazil are very risky to hold for more than a few days in recent new environment.
Wait patiently for the big sell offs is best & trade the profit on the 'bounces' afterwards. The chart in recent months has proved that trend to be best basis for trading strategy.

[THREE-DAY-TRADER]

It is just a matter of playing the oversold bounces. Don't try to over analyze the economy of Russia aspect. It is a trade, not an investment.
I am not saying Russia is a good investment, I'm just pointing out oversold bounces to take advantage of here, and they've paid off in the past. It is also similar to others such as Brazil-BRZU

[ShotMaker]

Down six of the last seven trading days. If an investor is looking for a quick flip, this is a good entry point in my opinion. If you are looking for a short term swing trade, (say 2 to 4 weeks)...then this might not be the best time. All in my opinion of course.

[Rock_nj]

RUSL is good for a gamble. The problem is that I don't have a handle at all regarding Russia's economic future. The Ruble keeps declining and for all we know Russia may be heading for an economic train wreck. I just don't know? The Russian markets and RUSL have been in a down-trend for months. Not sure where the light is at the end of the tunnel.

[THREE-DAY-TRADER]

RUSL getting cheap again toward 8's. I might consider a buy here really soon. (along with another favorite emerging market fund BRZU)

[THREE-DAY-TRADER]

Glad I dumped--- and traded out of RUSL on Friday.
I'm doing a lot more of that type of quick trading in this market the last couple weeks.
{Taking whatever the market gives me, and re-churning again later)

[THREE-DAY-TRADER]

Thanks.
The move is more overall market related. The meeting with Ukraine & Putin was unsuccessful I read this morning, so that can't be it

[Rock_nj]

Congrats on your RUSL trade! This has to be benefiting from the meeting between Putin and the Ukraine leader, as well as oil prices recovering.

[THREE-DAY-TRADER]

I bought this RUSL yesterday near 9.54. Making some $$$ so far today. I might sell it soon, however, & take the quick 'pop' rebound.

[dabonenose]

This is a totallly news driven etf right now. Buy when the Rooskies are minding their manners and sell when they rattle the sabres!

[JohnDee123]

Nothing settles down. But I'm loaded and will add more.

[Rock_nj]

Time for another RUSL rebound once things settle down?

[ospreyeye]

RUSL Weekly Chart: RUSL on close above the 50 DMA @ 22.66 for the week radar.............................$$$

[ospreyeye]

RUSL Chart: Russian Breakout……………$$$

[ospreyeye]

RUSL Chart: DIREXION DAILY RUSSIA BULL 3X SHARES - Top 1 month ETF Gainer -

Top & Bottom Individual ETFs Price 1 month
% Change
RUSL Direxion Daily Russia Bull 3X Share... 17.75 +41.75%
JDST Direxion Daily Jr Gld Mnrs Bear 3X ... 26.71 +31.94%
INDL Direxion Daily India Bull 3X Shares... 81.24 +30.86%

As you can see the daily headlines don't mean squat……..Russia is a raging Bull along w/ the rest of the emerging markets……..if you read my winter commentary you know I predicted this months ago……..emerging markets was/is one of my big plays for 2014………& it's already proven to be a winning strategy……….$$$

[robygg]

Nice rebound

[stargazer123]

Over the last two days or so things have really started to heat up instead of calm down and so the RUSL is going down. I sold my shares at 15.62 and bought the RUSS at 16.97. Now will watch developments.

[stargazer123]

The bid for todays opening is $20, but today is April fools day. The price in after hours trading yesterday at 7:48PM was $16.03, but that is still a respectable number, and if things stay calm in the Crimean, who knows, it could end up at $20 today, and if not today, then this week, $20 or higher.

[stargazer123]

U.S. Secretary of state John Carry, after talks with Russia's Sergey Larov, said that Russia is committed to finding a diplomatic solution to the Ukraine situation, but that in the meantime Russia will not remove its troops from the border.
After Hours trading indicated a price or $15.00 +0.79, possibly higher during the day.

On the other hand, Putin at any time could order the troops into the Ukraine. That would make the Russian stock market tank and possibly/probably American stocks. In that case sell RUSL shares and buy RUSS, the 3X leveraged shares for a falling Russian stock market. Going for $19 now and previously spiked to $25, (a 30% gain, and even if bought at $20 = a 25% gain) when the Russian stock market fell with Crimean crisis.

Or considering that our stock market's volatility could increase, which happens when stocks are suddenly falling, you could buy the TVIX, the 2X leveraged velocity ETF, which is now at $7.23 which
went to $8.40 during the Crimean crisis, a 16% gain, and in Feb it spiked to $11, a +50% gain.

[stargazer123]

Comparing other countries stock markets' PE and Price/Book value

P/BV is the stock price/(divided by) Total assets (minus) Intangible Assets & Liabilities
A P/BV ratio that is under 1.0 is good because that means that the assets are worth more than the liabilities.

A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company or the country that it is located in.

The ratio gives some idea of whether you're paying too much for what would be left if the company went bankrupt, or, if the ratio is under one, it means that if the company were broken up, its assets would be worth more than the stock price and you would end up making money.

In Europe in general the PE is 17.0 and the P/BV is 1.8
In Spain which is in difficulty the PE is 27.5 and the P/BV is 1.4
The Netherlands a very strong country has a PE of 18.7 and a P/BV of 1.8
Germany has a PE OF 15.1 and a P/BV of 1.8
Russia's PE of 5.2 far far below any other country and its P/BV has an unsanely low P/BV of 0.7

Of course that is because people, probably rightly, feel that its aggressive policies are going to harm the country. But over the long run, with such a low PE and coupled with its hugely undervalued P/BV, it is bound to recover and possibly go up several hundred percent.

Over the long run could work out to taking several years, but possibly just as likely, it could start rising before the year is out if people decide that Russian aggression is only going to affect local countries and that its stock market, compared to the rest of the world is a compelling buy. Of course over the short term its stock market could be hurt and its PE ratio and P/BV could drop even lower than their present values. But this would only make it a more compelling buy and they probably wouldn't drop that much lower. So even though the RUSL price may drop, I will hold on for the long term. Oh, and the after market price is at $15.0 so Monday could be an up day, depending of course on current events.

Well OK, I am keeping close track of current events, and if Russia invades the rest of the Ukraine, I will immediately sell my RUSL shares and buy back later, which could be awhile because Putin has said that he wants to regain all the countries that belonged to Russia going back to the 1920's and that could mean that things could really get UNSETTLED for a long time. But in the meantime, if nothing happens, I will hold on to my shares.

[I Need Help]

I have the impression you got in at a good point, and are sitting on some nice profits. Why not take the win?

Things will remain volatile.

Moldova is becoming another issue.

Mid to long term, I am pessimistic regarding how this will impact on the Russian stock market.

For now; personally, I would be in and out quick. Buy at the extreme oversold points. There has been a nice run the last few days, so we are definitely not at an extreme oversold.

I would take profits, and wait for a better reentry. Things could really deteriorate quickly on the down side, and set up another good oversold and buy opportunity.