Direxion issued a press release noting that it was conducting a one-for-two reverse stock split on for its triple-leverage ETF called the Direxion Daily Mid Cap Bear 3X Shares (NYSE: MWN). We have actually been waiting for the exact same news, albeit on a larger reverse split scale, on the financial triple-leverage ETF’s and ETN’s. We feel this needs to occur on the Direxion Daily Financial Bull 3X Shares (NYSE: FAS) and in the Direxion Daily Financial Bear 3X Shares (NYSE: FAZ). These other two ETF’s track the Russell 1000 Financial Services Index with triple leverage, but they are much more volatile because of the derivatives and because there are too many variations in the NAV versus the actual share price at certain times of the day. The low share prices also allow even the smallest of fast money traders
to get in and out with too little skin in the game.