Submind YouTube summaries
Thumbnail for Shawn Edwards from Direxion Talks Energy ETF's & SpaceX Single Stock ETF LOFF -The Tom O'Brien Show!

Shawn Edwards from Direxion Talks Energy ETF's & SpaceX Single Stock ETF LOFF -The Tom O'Brien Show!

Watch on YouTube

Video summary

The video features an interview with Shawn Edwards, an institutional ETF strategist from Direxion, who discusses current market volatility and specific investment opportunities across various sectors. The conversation begins with the energy sector, where crude oil prices have remained resilient near $84 a barrel despite ongoing geopolitical tensions in the Middle East and fears of supply disruptions around the Strait of Hormuz. Edwards highlights that these conditions create trading potential for investors seeking exposure to energy price swings, noting that elevated oil prices could also reignite inflation concerns and influence interest rate outlooks, as evidenced by the 30-year Treasury yield reaching its highest level since 2007. To capitalize on this volatility, Edwards presents a suite of tactical, short-term trading tools designed for daily use. For energy traders, he recommends leveraged ETFs such as ERX and ERY for double exposure to the energy select sector index, while GUSH and DRIE offer similar leverage specifically to the oil and gas exploration and production industry. He also introduces TEXU, a newer product providing double exposure to the top five energy companies including Exxon, Chevron, and Schlumberger. Beyond energy, he addresses the interest rate environment by suggesting TMF and TMV for trading long-term Treasury bonds, as well as TYO and TYD for shorter-duration instruments, allowing traders to position themselves whether they are bullish or bearish on bond prices. The discussion then shifts to the semiconductor sector, which is currently under scrutiny ahead of Nvidia's earnings report next week. Edwards explains that while AI spending remains strong, investors are closely watching if growth can meet expectations, making this a prime area for volatility trading. He offers NVDU for double bullish exposure and NVD for inverse exposure to Nvidia stock, allowing traders to hedge or speculate without selling their underlying positions. For broader sector participation, he points to SOXL for triple leverage on the semiconductor index and SOXS for inverse exposure, while also introducing TSXU and TSDX as concentrated funds focused on hyperscalers like Nvidia, Micron, Broadcom, AMD, and Taiwan Semi. Additionally, AIBU and AIBD are presented as options for those wanting to trade the artificial intelligence and big data themes with double leverage. Finally, the interview concludes with a focus on the space sector, specifically targeting SpaceX stock which is set to unlock additional shares soon, potentially increasing supply and volatility. Edwards introduces LOFF, a fund offering double bullish exposure to SpaceX, alongside its inverse counterpart, LFD, which provides double bearish exposure. These instruments are designed as tactical tools for short-term traders who wish to take positions on the stock's performance without holding it directly. Throughout the segment, Edwards emphasizes that these products are intended for active management and daily monitoring, directing listeners to Direxion's website for further details on these specialized ETFs.
Read the full video transcript
Welcome back, folks. We got an S&P right now up by 22 points. NASDAQ down by 33. And right now, folks, we're going to talk to Shawn Edwards. Sean is with Direction. He's institutional. He's a vice president, folks. Excuse me. Institutional ETF strategist. We talk to Shawn about once a month and we talk about ETFs. And folks, if you want to find out more about directions, great products. You can head on over to the front page of TFN, TFN, you see those great direction banners over there. And yeah, we're going to talk about some of those ETFs right now. Sean Edwards, good afternoon. Welcome back to TFNN. >> Hey, good afternoon, Tommy. Uh, and thanks again uh for having me. Another exciting day to talk some volatility that we're seeing in the markets and ways to take advantage using our ETFs. >> You know, it's pretty cool, Sean. The yields in focus today, but we just got Fed minutes, of course. Um, but I wanted to kick it off if we could with with some of the energy. You know, crude, of course, handling things pretty well, all things considered. We're at $84.36 right now for a barrel. But I I wanted to talk about crude because man, we got, you know, we're 6 months almost into the the skirmish, the war with Iran, and crude price is handling it pretty well. But for those energy traders out there, you guys have some great ETFs. Can we kick it off with maybe some energy for traders looking for some exposure to the energy sector? >> Absolutely. Uh and as you mentioned, Tommy, the Middle East tensions are back in focus as hopes for a US Iran progress. They they are fading. The straight of hormuz remains restricted. So it impacts a key route for roughly 20% of global oil consumption. As you mentioned, Brent cruise around 84 was around or above 90 uh dollars uh yesterday near a 3-week high. So as markets are continuing to price in prolonged supply disruption as a result of the tensions around the straight of horses. So, for those traders who want to trade the volatility around energy, I'm going to list off a few different ETFs that you can look at trading to take advantage of some of those swings. As we know, higher oil can reignite inflation concerns that influence rates. So, there are quite a few trading opportunities within energy, but then also rates. Uh to start with energy, you can look at ERX and ERY. Uh that's our pair for the direction daily energy bull and bear 2x ETFs provides exposure to the energy select sector index. Again these are tactical short-term trading tools is providing that daily exposure to that index 2x daily exposure. Uh secondarily you can look at uh gush and drip. We've talked about this particular ticker symbol I feel like all year Tommy uh just because it's providing exposure. Right. Exactly. It's providing exposure to the S&P oil and gas and exploration and production select industry index. So that is bull and bear 2x exposure on that index. So as we are seeing these swings in the price of oil, this is where we're seeing traders uh trade in and out of gush and drip throughout the year. Now also a newer strategy that we launched uh not more than a year old. The ticker symbol there is TEXU. That's a direction daily energy top five bold 2x ETF. So you're going to get exposure to energy related companies. Some of the top companies like Kicole Phillips, Exxon, Chevron, SLB, and then Williams. So within our energy um you know suite of leverage ETFs, there's quite a few options that you can look at taking advantage of. And as I mentioned, higher oil, it does complicate the rate outlook. Uh we did see the Fed uh you know did announce that buyback of of bonds as well. So we're seeing that the Fed is looking to take action as well, but oil also impacts uh the rate outlook. So we see the 30-year Treasury yield, it reached 5.33%, so the highest since around 2007. So uh if these oil uh prices stay elevated, long duration bonds could uh remain under pressure. So for those traders that are looking to trade volatility volatility around interest rates, you can look at trading ticker symbol TMF and TMV. So that gives you exposure to the long end of the curve with the exposure being the ICE US Treasury 20 plus year bond index. So again, TMF uh if you're bullish bond prices, TMV if you're bearish bond prices. So again, the direction daily 20 plus year treasury bull and bear 3x ETF for the shorter end of the curve. So, the seven to the 7 to 10year Treasury bull and bare uh ETFs. You can look at TYO and TYD. Uh so, again, that's the 7 to 10year Treasury uh bond index. So, quite a few tickers. I know I I read off quite a few, Tommy, but I think they could be helpful for the traders that are listening currently. >> Oh, and boy, those yields, man. You know, the the headlines almost write they don't they do write themselves as in like highest 30y year in almost 20 years was coming out there. And so the the they're going to see what they can do and and pretty cool when you you know you guys at direction you bring the the three times to some of those leverage. And so check it out folks TMF TMV. Pretty cool. You get some types of three times when boy we got some volatility in yields right now man. Uh jumping from there Sean going to we're in earnings man and I'm always talking about the single stock ETFs but semis in in particular but the the the big dog mania they got earnings coming up. Uh you guys got some great ETFs for Nvidia of course, but talking about semis, please talk to me and the traders, what what you guys have um in focus with the semis and Nvidia earnings coming up. >> Absolutely. Nvidia reports next week, we all know Nvidia is the bell weather when it comes to semiconductors. Um AI spending remains strong, but I think many uh traders, investors, they're they're looking to see whether or not the growth can keep pace with uh the expectations that we have as investors and traders. So we're looking to Nvidia. So for those traders that want to trade volatility around Nvidia's earnings, you can look at ticker symbol NVDU which provides 2x exposure bull exposure uh to the underlying performance of Nvidia on a daily basis. Or you can look at the inverse which is NVD which provides inverse 1x bare exposure to the performance of Nvidia common stock. So NVDU if you are bullish you want 2x exposure. NVD if you're bearish if you want to uh you know hedge your current position or if you're just simply bearish >> pretty cool and not to jump in but for those investors out there folks if you got positions in Nvidia and you just want to go risk off without selling your position right and taking that capital hit it's a great use in that capacity too um which is pretty cool >> absolutely thank you for that Tommy uh and then if you want broader exposure to the semiconductor sector our largest ETF which we have seen seen uh tremendous flows in and out as traders look to uh you know take advantage of the semiconductor trade is SO XL. I know many of your traders are probably trading in that currently. Again, SOXL 3x bull ETF on the semiconductor index. >> Pretty cool. Those semis, we're going to be writing about those for years, Sean. I mean, these moves, right? >> The volatility there is amazing. Uh and then also, if you're bearish, you can look at ticker symbol SOXS. That's uh inverse exposure to the NYSC semiconductor index. And then again uh one of our newer launches if you want concentrated exposure to some of those hyperscalers or semiconductor names uh you can look at Nvidia, Micron, Broadcom, AMD and Taiwan Semi. You can look at our top five semiconductor ETF. That ticker symbol there is TSXU and TSXD. And for those traders that want to trade the theme of AI, you could look at ticker symbol AIBU and AIBD. That's the direction daily AI and big data bull and bear 2x ETF. So some of the names mentioned they're within that broad basket of stocks that give you exposure to those companies participating in artificial intelligence and big data. >> And hey, we only have one minute left, but I got to get in to Liftoff and SpaceX and Tesla as well. You guys have the bearish one now as well. I saw man, you know, Liftoff is two times, but you got the bearish. So please talk to me about Liftoff and LFD, please. >> Sure. Really quickly, I think uh many of the traders are familiar with loft. So, liftoff LF 2x exposure to SpaceX. Now, we recently launched inverse 2x exposure to SpaceX as well. We're going to see uh tomorrow uh 319 million additional shares becoming eligible for trading. So, additional supply creating volatility. You can trade the bull or the bear. Whether you're bullish or bearish, SpaceX, we have the tools for you. Again, tactical short-term trading tools. monitor your trades daily. Uh, and as always, go to our website for more information. Again, thank you, Tommy, >> Sean. Great stuff, man. Two times, folks, on the bull and the bear on SpaceX as those unlocking. Sean, appreciate it, man. Look forward to talking to you next month. Thanks so much, brother. >> No problem, Tommy. Talk to you. >> Have a good one. We'll come right back.