In late November, we recommended shares in a leveraged ETF that had become extremely oversold.

The panic surrounding healthcare stocks due to the nomination of RFK Jr. as Health and Human Services Secretary created a panic-driven opportunity.

This is one of the strengths of our strategy in HX Trader—identifying high-probability trades in panic-driven sell-offs and capitalizing on their recovery.

The ETF has rebounded strongly from oversold levels, providing traders with a solid opportunity to lock in gains.

Here is the update…

 The ETF is Direxion Daily Healthcare Bull 3x Shares ETF (Ticker: CURE). This leveraged ETF tracks 300% of the daily price performance of the Health Care Select Sector Index (XLV).

Here is a stock price chart along with the relative strength index ("RSI") …

Remember that this ETF magnifies the performance of the XLV ETF, and as a result, it was hit much harder.

This ETF has traded below the "30" RSI level twenty-six times over the last decade. Here is how it has performed afterward…

As we anticipated, CURE rebounded from deeply oversold levels, in line with its historical pattern of strong recoveries after extreme RSI drops.

While there is still room to run, CURE has now regained a significant portion of its losses. We believe this is the right time to take profits and lock in our returns.