(NFXS) Direxion Daily NFLX Bear 1X - Ratings and Ratios

The Direxion Daily NFLX Bear 1X Shares (NASDAQ:NFXS) is an exchange-traded fund (ETF) designed to provide investors with a daily inverse exposure to the stock price of Netflix (NFLX). In essence, it allows investors to bet against the daily performance of NFLX, making it a tool for those who anticipate a decline in the stocks value.

To achieve its investment objective, the fund invests at least 80% of its net assets in various financial instruments, such as swap agreements and options. These instruments are carefully selected to ensure that, in combination, they provide a 1X daily inverse exposure to NFLX. This means that if NFLXs stock price falls by 1% on a given day, the NFXS ETF is designed to rise by 1%, before fees and expenses. Conversely, if NFLXs stock price rises, the NFXS ETF is expected to decline by a corresponding percentage.

Its worth noting that the NFXS ETF is categorized as a Trading--Inverse Equity ETF, indicating its focus on providing inverse exposure to a specific equity, in this case, NFLX. The fund is also non-diversified, meaning it can invest a larger portion of its assets in a smaller number of securities, potentially increasing its exposure to the performance of NFLX.

From a technical analysis perspective, the current price of NFXS is $14.18, which is below its 20-day Simple Moving Average (SMA) of $14.62, indicating a potential bearish trend. The 50-day SMA and 200-day SMA are at $16.59 and $18.87, respectively, further suggesting that the ETF has been trending downward over the longer term. The Average True Range (ATR) is 0.48, or 3.38% of the current price, indicating moderate volatility.

Considering the fundamental data, the Assets Under Management (AUM) for NFXS stand at $17.27 million. While this is a relatively small AUM, it is still a viable option for investors seeking inverse exposure to NFLX.

Forecasting the future performance of NFXS requires analyzing both technical and fundamental data. Given the current technical indicators, such as the price being below multiple SMAs, and considering the inverse nature of the ETF, a potential increase in NFLXs stock price could lead to a decline in NFXSs value. Conversely, if NFLXs stock price were to drop, NFXS could potentially rise. However, the decision to invest in NFXS should be based on a thorough analysis of NFLXs prospects and the overall market conditions. If NFLX is expected to face challenges, such as increased competition or regulatory issues, NFXS might be an attractive option for investors looking to capitalize on a potential decline.