(AAPD) Direxion Daily AAPL - Ratings and Ratios

The Direxion Daily AAPL Bear 1X Shares ETF is designed to provide investors with a daily inverse exposure to the performance of Apple Inc. (AAPL). This means that the fund aims to deliver the opposite return of AAPL on a daily basis, making it a potential tool for investors seeking to hedge against or speculate on declines in the tech giants stock price.

To achieve its objective, the fund invests in a range of financial instruments, including swap agreements and options, that collectively provide the desired inverse exposure to AAPL. As a non-diversified ETF, its portfolio is heavily concentrated on achieving this specific investment goal, rather than spreading investments across a broad range of assets.

Given the funds focus on daily inverse exposure, its essential for investors to understand that its performance over longer periods may not perfectly inverse-track AAPLs performance due to the effects of compounding. The funds Assets Under Management (AUM) stand at $49.24M USD, indicating a relatively modest size that could impact liquidity or the ability to maintain its investment strategy.

Analyzing the provided technical data, the last price of AAPD is $17.28, with short-term moving averages (SMA20 and SMA50) indicating a slightly bearish trend as the price is below both the 20-day and 50-day SMAs. However, the price is above the 200-day SMA, suggesting a longer-term bullish trend. The Average True Range (ATR) of 0.81 represents a 4.67% daily price range, indicating moderate volatility. Considering the 52-week high and low ($21.58 and $14.66, respectively), AAPD is currently trading near the lower end of its recent range, suggesting potential for either a rebound or further decline.

Forecasting the future performance of AAPD requires considering both technical and fundamental factors. From a technical standpoint, if AAPD continues to trade below its short-term moving averages but remains above its long-term SMA200, it might be poised for a potential correction or consolidation. On the fundamental side, the performance of AAPL will be crucial. If AAPL experiences a significant decline, AAPD could potentially rise, given its inverse exposure. Conversely, if AAPL rallies, AAPD is likely to decline. Given the current technical indicators and assuming AAPL experiences a moderate decline due to market volatility or sector rotation, AAPD could potentially see a short-term increase, possibly targeting the 20-day SMA at $17.53 as a resistance level. However, a strong rally in AAPL could push AAPD down towards its 52-week low.