The Direxion Financial Bull 3x ETF (FAS) is one of the popular ETF’s around, so I’d thought I’d take a technical look at it.  As you can see it’s been on fire, catapulting from 60 to over 100 in just a few months.  It’s looking mighty tired and overstretched though. 

Stochastics reveal that the FAS ETF hasn’t been this overbought since last August and taking a look at the volume of the past two weeks shows buyers may be tiring up at these levels.  The bottom line is that FAS is due for a pull back off these levels.  The first level of support is around 95 and if it can’t hold there, 88 is the next level.  There is strong support all the way down to the 70 level which is the 50 weekly moving average (an area it’s found support at twice now).  A break below 70 would indicate financials are rolling over.

Below is a list of ETFs showing sustained accumulation over the last 20 and 40 trading days.  That is, institutions are putting money to work in these particular ETFs which is revealed by the amount of buy volume.  ETF Central displays the amount of accumulation through a proprietary indicator, called the Demand Indicator (or DI20/DI40). 

As you can see, the big fellas are clearly betting the market will continue to deteriorate.  Do not as they say, do what they do! 

The list updated daily (along with other useful ETF lists) can be found on the ETF Tracker page.

List of ETFs showing the greatest demand over the last 20 trading days

1. Direxion Technology Bear 3x ETF (TYP)
2. ProShares Ultra Short MCSI (EFU)
3. ProShares Ultra Short Technology (REW)
4. VIX Short Term Futures (VXX)
5. ProShares UltraShort China (FXP)
6. ProShares UltraShort Silver (ZSL)
7. WisdomTree Ultra Short Emerging Markets (EEV)
8.  ProShares Ultra Short Basic Materials (SMN)
9.  ProShares Ultra Short Semis (SSG)
10. Direxion Financial 3x Bear ETF (FAZ)