The upturn in employment should further stimulate this transport ETF


A strong transport sector can also indicate a strong economy, and this should help boost the Direxion Daily Transportation Bull 3X Actions (TPOR) Even further.

The fund is already up more than 80% over the year, thanks to its triple leverage effect. If there is still room to run in 2022 with an even stronger workforce, TPOR could give traders even more reason to rejoice.

“Despite headwinds such as inflation issues and supply chain delays, the sector covering trade, logistics / transport and utilities is expected to recover in 2022 all jobs lost due to the pandemic , driven by hiring growth in sub-sectors like durable goods, couriers and warehousing, a labor market analysis, ”says a DC Velocity article.

“One of the reasons for this increase in employment is that consumers are taking advantage of historically low interest rates and using their accumulated savings to make purchases ranging from online purchases to cars, appliances and furniture, according to the” 2022 US Job Market Outlook “report from ThinkWhy, a provider of cloud-based HR and talent acquisition solutions,” the article adds.

As mentioned, TPOR seeks daily investment results equal to 300% of the daily performance of the Dow Jones Transportation Index. The index measures the performance of large companies well known in the transportation industry.

A retail trader to consider

Additionally, the DC Velocity article mentions how consumers are making a comeback with retail spending. This should also open up opportunities in another fund: the Direxion Daily Retail Bull 3X ETF (RETL), which seeks daily investment results equal to 300% of the daily performance of the S&P Retail Select Industry Index.

The fund had grown by over 200% by mid-November before the Omicron variant ended the party. Still, RETL is up over 80% year-on-year, and there is still some December holiday shopping to be completed.

“Despite headwinds in the economy, November retail sales data confirms consumers continue to spend, as evidenced by a 14% year-over-year increase in sales,” said Matthew Shay , Chairman and CEO of NRF, in a press release. “We expect demand to remain strong through December, even as consumers started shopping for the holiday season earlier than ever this year. Despite the rise of the omicron variant, rising vaccination rates combined with ongoing retail safety protocols and procedures have given consumers the feeling that they can continue to shop safely and conveniently. We believe holiday sales this year could increase by up to 11.5% from 2020. ”

RETL chart

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