Direxion Daily Energy Bear 2X Shares

ERY

Market cap $24.4M

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.

Oil prices are on their longest weekly losing streak since 2018, leading to a surge in inverse or inverse-leveraged energy ETFs.