(DSP5) Lyxor SP500 Daily (-2x) - Ratings and Ratios

The Lyxor S&P500 Daily (-2x) Inverse UCITS ETF C USD (PA:DSP5) is an exchange-traded fund that aims to provide inverse exposure to the S&P 500 Index, amplified by a factor of 2. This means that the fund is designed to perform well when the S&P 500 Index declines, and its returns are expected to be twice the opposite of the indexs daily returns.

As a Trading - Leveraged/Inverse Equity ETF, DSP5 is suited for sophisticated investors seeking to hedge against potential downturns in the US stock market or to speculate on declines in the S&P 500 Index. The funds inverse and leveraged nature makes it a high-risk investment, as its value can fluctuate significantly in response to market movements.

Analyzing the provided , we observe that the ETFs last price is 5.63, which is below its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, and SMA200). This suggests a bearish trend, as the price is below its various moving averages. The Average True Range (ATR) is 0.19, indicating a relatively low level of price volatility. The 52-week high and low prices are 7.02 and 5.63, respectively, showing that the ETF has recently hit its lowest price in the past year.

Considering the , the Assets Under Management (AUM) of DSP5 stand at 47.00M EUR, indicating a relatively small fund size. This may impact the ETFs liquidity and trading costs.

Using the available data, we can forecast the ETFs potential performance. Given the current bearish trend and the ETFs inverse nature, a continued decline in the S&P 500 Index could lead to an increase in DSP5s value. However, the leveraged aspect of the fund amplifies potential losses if the index were to rise. Based on the SMA20, SMA50, and SMA200, a potential support level for DSP5 is around 5.50-5.60. If the S&P 500 Index continues to decline, DSP5 may see a short-term bounce or stabilization around this level. Conversely, a reversal in the S&P 500 Index could lead to a significant decline in DSP5s value.

To make informed investment decisions, it is essential to closely monitor the S&P 500 Index and adjust expectations accordingly. Investors should also be aware of the potential risks associated with leveraged and inverse ETFs, including the possibility of significant losses if the market moves against the funds strategy.