“Last week, I said that despite accusations of fraud against Goldman Sachs (NYSE: GS), I suspected it would “still land on its feet like a cat.” Even the grilling it got at the hands of self-serving politicians doesn’t change my thinking. The rest of the financial world, though, seems far more precariously balanced, and I think the situation in Greece will start of a number of dominoes falling throughout the world,” Rich Duprey Reports from The Motley Fool.

Duprey goes on to say, “With such a bearish outlook, it might be tempting to bet against the financial sector by purchasing shares of the Direxion Daily Financial Bear 3X ETF (NYSE:FAZ). After all, if Goldman, Citigroup (NYSE: C), and other investment and banking houses wobble, this ETF could quadruple the opposite of their returns (as measured by the Russell 1000 Financial Services Index).”

“But these leveraged ETFs aren’t so easily manipulated, and as the past year has shown, markets can be quite insane. While “emtking” thinks the Goldman charges will be just the “tip of the iceberg” that leads to the ETF’s ascension, the market’s showing amazing powers of ignorance here. From its March 2009 peak at $1,040 per share, this ETF has lost 99% of its value. Of course, most investors won’t hold the ETF for a year. Heck, they likely won’t hold it for more than a day. Even Direxion says it’s really not appropriate for longer holding periods. Our financial institutions may indeed be headed for trouble, but I wouldn’t recommend using this or any leveraged ETF anywhere other than on CAPS,” Duprey Reports.

See The Full Article: HERE

We have put together some details on the Direxion Daily Financial Bear 3X ETF (NYSE:FAZ) and The Direxion Daily Financial Bull 3X ETF (NYSE:FAS) for your viewing:

Direxion Daily Financial Bear 3X Shares (NYSE: FAZ)

Fund Objective

The Financial Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the Russell 1000® Financial Services Index (“Financial Index”). There is no guarantee the fund will meet its stated investment objective.

Target Index

The Russell 1000® Financial Services Index is a capitalization-weighted index of companies that provide financial services. As of April 30, 2008, the Index had 227 components, derived from the Russell 1000 Index with an average market capitalization of over $11 billion dollars and a median market capitalization of $4.4 billion dollars. One cannot directly invest in an Index.

Index Sector Weightings

Data as of 12/31/2009 is subject to change at any time.

Direxion Daily Financial Bull 3X Shares (NYSE: FAS)

Fund Objective

The Financial Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000® Financial Services Index (“Financial Index”). There is no guarantee the fund will meet its stated investment objective.

Target Index

The Russell 1000® Financial Services Index is a capitalization-weighted index of companies that provide financial services. As of April 30, 2008, the Index had 227 components, derived from the Russell 1000 Index with an average market capitalization of over $11 billion dollars and a median market capitalization of $4.4 billion dollars. One cannot directly invest in an Index.

Index Sector Weightings

NYSE:FAS, NYSE:FAZ