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Chinese stocks have been big movers. We'll tell you why and which ETFs are trending. Plus, we'll examine gold touching all-time highs, and we'll give you the 411 on newly launched single-stock ETFs tracking companies like Netflix and others. Ed Egilinsky with Direxion joins us right after this. Stick around.
Welcome to the program. I'm Zaliha Haden. It's great to have you watching. If you are new to ETF Guide, welcome aboard and be sure to hit that subscribe button. And for our long-time viewers, welcome back and don't forget to post your thoughts and questions in our YouTube comment section below. You can also watch our original programs like this one, along with ETF Battles and the rest of our lineup right here on YouTube along with Apple TV, Amazon Fire TV, and Roku.
So, don't miss out. Joining us now is Ed Egilinsky at Direxion. Ed, great to see you again and welcome back. Yeah, thanks for having me back. Let's get started. Last month, China's central bank unleashed a massive economic stimulus plan, and we've seen big moves in Chinese stocks. Direxion's China-linked ETFs like CWEB, CHAU, and YINN have been on the move and trading volume is booming.
So, how are some ETF traders positioning themselves? Yeah, these are definitely for uh short-term trading purposes. There's been uh significant inflows into our entire leverage and inverse China suite, and as you stated, led by YINN, which is the triple leverage of the basically the FXI, which is the FTSE China 50, uh as well as CHAU, which is the double leverage bull of the CSI 300 A-shares.
We saw a big rally in Chinese stocks in the first half actually in September and the first week of October as a result of the stimulus announcement, but there was a big reversal last week coming off the the China holiday. And this illustrates how these should be used as short-term trading vehicles cuz you had a significant upside, but then over the last week Chinese stocks have pulled back a bit.
And there's been concerns about stimulus that they won't be as sizable as first thought. The other thing to look at when you're talking about China stocks is the geopolitical environment, especially with the upcoming US election. How will tariffs be handled with with China? That could influence a lot of Chinese stocks, so we'll find out about that you know, first full week in November.
Shifting gears, the US Federal Reserve reduced interest rates by half a percent at its last meeting and more rate cuts could be ahead. How is this impacting Treasury ETFs and what trends in the bond market are you observing? Well, it's interesting. We continue to see inflows into our triple leverage bull 20-plus year Treasury.
Some of you might be familiar with the non-leveraged TLT. We have TMF, which is a triple leverage bull. We also have the triple leverage bear TMV on the 20-plus year Treasury. It's interesting, the Fed changed course started easing rates in September, but after the after that announcement rates have started to actually rise again.
Treasury's rising above 4% recently. We have a triple leverage bull and bear TYD and TYO on the 7 to 10-year Treasury. A large part of why rates have maybe started to inch up again is some of the economic data that's come out recently, non-farm payrolls and a hotter-than-expected CPI and PPI. So, the Fed's going to continue to be data-dependent.
Uh so, maybe in November people were expecting 50 bips cut. Now, we may see 25 or none depending on uh the data that the Fed's going to be looking at. But, regardless, there's going to be a lot of volatility where short-term traders can continue to trade interest rate movements whether they're bullish or bearish.
Got it. And with gold rallying and continuing to hit all-time highs, how can traders look to take advantage of the price action within gold mining stocks? Well, there's some relationship between gold mining stocks and gold. It's it's not the same. There could be some divergences there. Uh but, gold mining stocks have certainly kept pace with gold hitting all-time highs this year.
Uh so, if you really want to trade the gold mining stocks, uh you could do it either bull or bear. We have a 2x bull and bear, uh aptly named Nugget and Dust. Uh for those of you who want to track the NYSE Arca gold mining index. Some of you may be familiar with the non-leveraged version, GDX. We also have junior gold miners, uh 2x bull and bear on that.
Uh so, that is JNUG and JDST. And that's based off the uh MVIS junior gold miner index, GDXJ. Some of Some of you may be familiar with the non-leveraged uh ETF that provides exposure to that index as well. Uh so, you may continue to see short-term uh traders look at gold miners or junior gold miners as a proxy to trading uh gold the commodity itself.
And some people might say gold mining stocks might have play a little more catch-up uh to gold the commodity itself. With rates also potentially uh being lowered, that could help uh mining stocks as they're very capital-intensive. Make sense. Now, with the success of your leveraged and inverse single stock ETF suite, can you discuss the recent addition of four more pairs of single stock ETFs based on Taiwan Semi, Broadcom, Micron Technologies, and Netflix?
Sure. Three of the four, uh really just broaden out the suite of the semiconductor space. Here's a way to trade individual, uh single stock 2x bull or non-leveraged inverse bear. As you said on Taiwan Semi, uh Micron uh Technologies, and Broadcom as well. Our suite of leveraged and inverse single stocks have become very popular.
Uh we have the Mag 7, all the single stocks within it. Uh that franchise is a little over 3 billion. So, if you're looking to trade headlines with with individual names, we wanted to add to that in addition to Netflix. Uh Broadcom and Netflix uh have earnings soon. Uh it is earning season, so uh a lot of these companies going to report over the next month.
Here's a way to trade it whether you're bullish uh 2x on the long side, or if you're bearish and think valuations are maybe a little high, non-leveraged inverse on the bear side. Keep in mind, we're really known for uh leveraged and inverse trading tools in general, but especially in the semiconductor space.
Uh the NYSE Semiconductor Index, our most popular product, 10 billion plus, is SOXL, which is triple leveraged off of that broad semiconductor index. And for those of individuals that want to trade uh leverage, uh but don't want to use margin, here's a way to do it in a packaged ETF. And for those that might want to short an individual stock, uh or basket of stocks, but couldn't do so within their account, uh here's a way to do so again where your liability's limited to your investment through a packaged ETF.
But, one of the things now I I'd want to preface is that these are short-term trading vehicles for active traders, and you need to monitor these on a day-to-day basis, um and know that they're appropriate for you before you should consider trading these. And one last thing before you take off, Ed, the US presidential election is a close match.
Are there any particular ETF markets that could be specifically at play based upon the outcome? Well, certainly the election definitely's up in the air. If you look at any of the major sites predicting the election, it's really a toss-up. One of the the key things is there's a difference, of course, between the two parties in terms of their economic policies, and that could play out in terms of trading the sectors pre- and post-election.
Some that come to mind certainly is the technology space. We have triple leverage bull and bear on the on the S&P select technology sector. You have the CHIPS Act, you have the DOJ looking maybe to break up Google, for example. AI scrutiny in terms of how they're going to restrict that, differing with the parties.
The energy complex, there's two different views there, little more alternative energy versus fossil fuels. We have a number of ETFs that can participate with energy stocks for short-term traders. Among them, ERX, ERY, which is 2x bull and bear on the energy select sector index. Healthcare, for example, another difference in terms of maybe policies between the two parties.
The ability to trade biotech there, for example, triple leverage on the biotech LABU and LABD, which is the bull and bear. And financials, of course, it's earning seasons, banks are kicking it off. Ongoing banking regulations, so we have the triple leverage bull and bear on the financial select sector index, which is FAS, FAZ.
And for those that really want to trade also regional banks which have lagged this year, the mega cap banks, we have a triple leverage bull on that also which is DPST. So we have a lot to cover there, a lot of sectors and industries that people can trade pre and post election and those are just some of those sectors that might be the most heavily influenced.
Ed, thank you so much for your timely insights and we'll see you again soon. Definitely. Have a good week. Be sure to visit direction.com to learn more about directions ETF lineup and strategies for positioning your investments for the road ahead. I'm Thalia Hayden. Thanks so much for watching and we'll see you next time.
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