$DFEN Direxion Aerospace and Defense DD via /r/wallstreetbets #stocks #wallstreetbets #investing


$DFEN Direxion Aerospace and Defense DD

Positions and Overview:

Before anything else, my position for you retards.

2,400 Shares @ 21.32

https://preview.redd.it/1yvxcwfl8ix61.jpg?width=586&format=pjpg&auto=webp&s=5368491dd33693544377c57c7c9a5cb4e091857d

$DFEN a.k.a The Direxion Aerospace & Defense Bull 3x Shares ETF (Oh god! An ETF? Yes.) has been slowly rising out of misery since March when the Coronavirus knocked-out the Market harder than Ray Rice hit his girlfriend. Based on some extremely intriguing chart analysis, blue-chip companies being the bulk of holdings, many of the holdings benefitting from a return to normal, and a personal YOLO, I believe this ETF has the potential to create big returns in the future.

Let’s Now Look At Some Juicy Analytics

  • $DFEN currently sits @ 21.88, before COVID hit the ETF was trading @ 69.30
  • When Covid hit, $DFEN dropped to a staggering low of $6.00
  • $DFEN debuted in 2017 @ 24.00 and before COVID hit, it has never fallen below the Initial Price ($24 to $70 in roughly 3 years time)
  • The CDC announced today they expect to see “A significant drop in the level” of cases by July. This can only help the Airline Holdings of $DFEN

A Nut-Busting Phenomenon

The chart below is the main reason I am intrigued with $DFEN.

$DFEN TOP 10 HOLDINGS (This is roughly 75% of the ETF)

https://preview.redd.it/hggh08779ix61.png?width=957&format=png&auto=webp&s=d88e6e5e70c27ab711bf6565bbae6968f7fe6f06

In Summary/Positives

  • 6 out of the 10 largest holdings have yet to recover from Pre-Pandemic levels. However, all of the companies that have yet to recover are Large Cap, Blue-Chip corporations. In addition, the stocks that have yet to fully recover make up roughly 50% of holdings.
  • Instead of trying to bet on one of these companies recovering faster than all others, $DFEN provides an all in one solution for you retards.
  • Aerospace isn’t going anywhere
  • Biden’s defense budget is slightly higher than Trump, meaning Gov’t will continue to buy from certain companies being held in $DFEN

Potential Downfalls/Reasons I am wrong

  • The current economic fears cause market correction (Inflation, Biden Tax Hike, Bubble fears)
  • Covid Cases continue to run and stall recovery (Thank you India for your contributions)
  • Largest Holding Companies miss earnings
  • I have been wrong many times in my life.

*Again, I am in @ 21.32 with 2,400 Shares. I am not a financial advisor and this is not financial advice. I am a simple 19 year old college student who has had mild success in the market (Thanks in large part to WSB #BB #EXPR). If you need a reason to trust me, I have been investing for 3 years and have quadrupled my money. If you need a reason not to trust me, I lost 30% of my portfolio in one day (Thank you Coinbase!).

Submitted May 06, 2021 at 03:54PM by Krebsy13
via reddit https://ift.tt/33k9E7F

Trade Crypto 👋  FTX is the #1 Cryptocurrency Derivatives Exchange

Holler Box