In times of high inflation, consumers' purchasing patterns have become more strategic, and rightfully so. In turn, this is keeping the retail industry in check.
These leveraged ETFs surged more than 20% last week.
Direxion Daily Retail Bull 3X Shares ETF offers 300% daily leverage on the S&P Retail Select Industry Index, making it highly risky. RETL is suitable for short-term traders with high-risk tolerance due to its extensive leverage and need for sustained momentum. Historically, RETL has underperformed, validating my cautious stance from 2022, as the retail sector struggles with consistent momentum.
Signs of a cooling economy during the month of August can help substantiate the Federal Reserve's decision to cut interest rates. In turn, this could uplift a pair of leveraged exchange traded funds that focus on consumer spending.