The Triple X Aerospace Strategy

Soar Through Market Volatility with the Triple X Aerospace Strategy

For investors searching for opportunities to beat the market, the Triple X Aerospace strategy is an attractive choice. This approach targets the aerospace sector, which includes commercial aviation, defense, and space exploration. These areas are experiencing significant growth due to:

  • Increased global passenger traffic: As the world economy picks up and air travel rebounds, there's a booming demand for commercial aircraft, benefiting manufacturers and airlines.

  • Larger defense budgets: With rising geopolitical tensions and the emphasis on national security, there's more investment in advanced military technology, offering opportunities in aerospace and defense.

  • Growth in space exploration: The expanding space economy, with more investments in satellites, launch vehicles, and space tourism, opens up new possibilities.

The Triple X Aerospace Strategy aims to leverage these trends to outperform the market. It uses leveraged ETFs, which can magnify both gains and losses, offering a high-reward but high-risk investment opportunity. The strategy employs technical indicators to improve entry and exit points, enhancing potential returns while managing risks. The following key indicators are applied to the Direxion Daily Aerospace & Defense Bull 3X Shares (symbol DFEN):

  • 1-Day Return: Identifies significant upward movements in a single day, indicating good buying opportunities when the aerospace sector shows strong momentum.

  • Stochastic Indicator: Helps spot overbought conditions, suggesting when it might be time to sell before potential downturns.

This method focuses on short-term price movements to secure quick gains, using the Stochastic Indicator to determine optimal selling times, thus minimizing losses. It's a strategic way to achieve higher returns with less risk by capitalizing on the sector's volatility and timing the market effectively.

A Word About the Direxion Daily Aerospace & Defense Bull 3X Shares (symbol DFEN)

The Direxion Daily Aerospace & Defense Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones U.S. Select Aerospace & Defense Index. There is no guarantee the fund will achieve its stated investment objective. This leveraged ETF seeks a return that is 300% the return of its benchmark index for a single day. The fund should not be expected to provide three times the return of the benchmark’s cumulative return for periods greater than a day.

Index Information

The Dow Jones U.S. Select Aerospace & Defense Index (DJSASDT) is provided by S&P Dow Jones Indices LLC (the “Index Provider”). The Index attempts to measure the performance of the aerospace and defense industry of the U.S. equity market. The Index Provider selects the stocks comprising the Index from the aerospace and defense sector on the basis of the float-adjusted, market capitalization-weight of each constituent. Aerospace companies include manufacturers, assemblers and distributors of aircraft and aircraft parts. Defense companies include producers of components and equipment for the defense industry, such as military aircraft, radar equipment and weapons. One cannot invest directly in an index.