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EnigmaDude (98.07)

Direxion ETF reverse split makes me look like a genius

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February 24, 2011 – Comments (6) | RELATED TICKERS: TZA

In anticipation of this week's market correction, I added an outperform rating (short-term) on TZA last week.  Today my score for TZA is up more than 200 points.  I figured it must have been something besides pure luck that caused the huge jump in points.

Additionally, the firm will execute a 1-for-3 reverse split of the shares of the Direxion Daily Small Cap Bear 3x Shares (TZA), for shareholders of record after the close of the markets on Feb. 23, 2011.

6 Comments – Post Your Own

#1) On February 24, 2011 at 1:10 PM, SultanOfSwing (99.03) wrote:

Me too.  I'm getting all these cool "score club" charms which will disappear shortly.  Those Direxion Bear ETFs will come back to earth once CAPS does the adjustment.  Enjoy it while it lasts.  There was one .PK stock that went to over 2000 points temporarily when it did a reverse split.  Does anyone remember which stock that was?

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#2) On February 24, 2011 at 1:28 PM, fireman999 (99.40) wrote:

I was short several of these dogs. I may set a record for biggest loss, down from a 90+ rating to 30 in one day!  :)

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#3) On February 24, 2011 at 2:08 PM, kdakota630 (29.74) wrote:

I'm actually up $5,000 with R.L. account because of the split.  I'm kind of hoping they don't realize and correct their error, but what are the chances of that?

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#4) On February 24, 2011 at 2:09 PM, kdakota630 (29.74) wrote:

Plus I'm enjoying a nice day on CAPS because of the split, but I know (sadly) that it's only temporary.  At least my previous two days were real.

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#5) On February 24, 2011 at 2:21 PM, SultanOfSwing (99.03) wrote:

kdakota,

A thought just occurred to me... What if you sold your position today?  Hmmm.  Nah, they'd probably still catch it soon.  And if you bought something else with those funds, they'd probably do a forced redemption or something else that would cause pain.

I'm in the same boat, as I'm up a lot with a large TZA position in real-life too.

There will be a lot of needle spikes and dips on those CAPS player charts due to today's "errant" prices.

SoS

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#6) On February 24, 2011 at 5:12 PM, kdakota630 (29.74) wrote:

SultanOfSwing

I thought of that almost immediately myself and came to the same conclusion.

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