Direxion Daily Energy Bear 2X ETF

ERY

Market cap $41.6M

In early 2026, the energy sector has reclaimed its title as one of — if not the — most volatile corners when it comes to the equities market. As Direxion CEO Doug Yones would say, heavy volatility makes for “perfect Direxion weather.

Conflict in Iran is spooking global markets, sending oil prices higher. Some geopolitical experts and professional investors are speculating that prolonged conflict there or a traditional boots-on-the-ground military campaign could send crude price soaring to $150 per barrel.

The first month of 2026 is already in the books. Which sector walked away with the top spot when it came to total returns?

In the world of oil trading, volatility is a way of life. It's also an ideal opportunity for traders to make a profit.

The energy sector has yet to fully recover from April's tariff tantrum. However, the growth of AI could be the catalyst to reenergize sector performance.

Energy sector bulls are feeling anything but energetic these days. Nonetheless, traders can still extract profitable opportunities in the sector with the flexibility of leveraged/inverse funds from Direxion.

Chris Vermeulen is bearish on mega and small caps until there's clear indicators the markets will rally off current levels. He urges investors to look into inverse ETFs as a way to play on bearish action.

With rate cuts potentially looming in September, hedge funds are loading up on energy sector stocks,. That could give traders opportunities in leveraged ETFs if they want to mirror their bets.

Editor's note: Any and all references to time frames longer than one trading day are for purposes of market context only, and not recommendations of any holding time frame. Daily rebalancing ETFs are not meant to be held unmonitored for long periods.

The expectation of rate cuts is pushing oil prices higher as U.S. consumer prices fell during the month of June. This could give bullish oil and energy traders more momentum to bet on price increases when the Federal Reserve finally loosens monetary policy.