The Triple X Europe Strategy

Uncorking Europe's Potential: A Savvy Strategy for Growth

European stocks offer a compelling option for investors seeking to diversify their portfolios and tap into new markets. These stocks represent established companies from countries like France, Germany, and the UK with a number of potential benefits:

  • Economic stability: Developed European economies are characterized by political stability, robust infrastructure, and advanced technological development, providing a strong foundation for corporate growth.

  • Global reach: Many European companies are multinational corporations with a global footprint, which means they offer access to diverse markets and help mitigate the risk associated with any single economy.

In short, investing in developed European stocks can provide investors with exposure to both the established companies at the core of this economically vibrant part of the world and the innovative upstarts that are leading the charge for the next wave of growth.

The Triple X Europe Strategy offers a way to amplify potential returns on the European stock market using the Direxion Daily FTSE Europe Bull 3X Shares (EURL). Here's how the strategy aims to identify entry and exit points:

  • Buy signal: This strategy utilizes 5-day price momentum to identify short-term upward trends. When the price shows significant positive movement over the past five days, it might signal a potential buying opportunity.

  • Sell signal: The strategy uses the 20-day vs. 50-day Simple Moving Average (SMA) crossover. When the 20-day SMA falls below the 50-day SMA, it might indicate a potential downtrend, suggesting a time to exit the position and potentially minimize losses.

This combination of technical indicators is successful because it captures short-term upward trends through 5-day price momentum for buying opportunities, and signals sell opportunities through the 20-day vs. 50-day Simple Moving Average (SMA) crossover to identify potential downtrends. This approach allows traders to capitalize on quick gains while providing a mechanism to exit positions before significant losses, effectively balancing risk and opportunity.

A Word About the Direxion Daily FTSE Europe Bull 3X Shares (symbol EURL)

The Direxion Daily FTSE Europe Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE Developed Europe All Cap Index. There is no guarantee that the fund will achieve its stated investment objective. This leveraged ETF seeks a return that is 300% of 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 FTSE Developed Europe All Cap Index (ACDER) is a market capitalization weighted index that is designed to measure the equity market performance of large-, mid- and small-cap companies in developed markets in Europe. One cannot invest directly in an index.