$18.69 0.86 (+4.82%)
11/27/2009 1:00 PM

Direxion Shares ETF Trust Large Cap Bear 3x (BGZ)

CAPS Rating: 1 out of 5

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Member Avatar cjlee001 (84.07) Submitted: 11/9/2009 12:05:08 PM : Underperform Start Price: $19.63 BGZ Score: +6.29

shorting all ultrashorts, bears, or any of these terrible "leveraged" funds.

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Member Avatar fooletfs (60.76) Submitted: 11/8/2009 8:48:44 PM : Underperform Start Price: $19.63 BGZ Score: +6.29

testing what's been said here on CAPs.
Do shorting all 3x ETFs mean easy net returns?
YES, IF, you rebalance once ratio goes 1.7 (or 1/1.7)

In a sideways or down market this would also translate into net points on CAPs
But your accuracy will be hurting, you'll mostly be 50% accuracy at best on this strat.
Current batch I am redthumbing here on CAPs today (at these levels):
BGU/BGZ
MWJ/MWN
TNA/TZA
FAS/FAZ

Further on my personal thoughts on this strat:
using hypothetical scenarios, actual 3x #s from '09, and 2x funds from differing periods:

Worst case scenario, this strategy loses in a year: (5%)

Best case scenarios in a year: 10%+

Should expect most returns in a year: 3-7%

In implementing this strat, pray for two things: 1) Hope your short shares don't get called back by broker & 2) if in rebalancing you wish to increase position, hope you can short more.

This strategy may be a good play to allocate comparable to the fixed income/bond allocation of portfolio or completely replace that bond allocation with this.

I would say maximum amount you sell each position is 23% of face value of account. IE a $10,000 acct, short sell a maximum $2,300 worth of each ETF.

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Member Avatar ShortUltras (94.11) Submitted: 10/26/2009 6:19:53 PM : Underperform Start Price: $20.38 BGZ Score: +10.67

Ultra-shorts and Ultra-pros are all bad investments due to daily rebalancing

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Member Avatar Rheddrian (< 20) Submitted: 10/21/2009 3:47:52 PM : Outperform Start Price: $19.62 BGZ Score: -5.88

Cake Dex test run

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Member Avatar Oraclepicks (74.41) Submitted: 10/19/2009 12:19:23 PM : Outperform Start Price: $18.83 BGZ Score: -0.44

you knew it, contrarian

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Member Avatar AndrewGreenBull (97.68) Submitted: 10/13/2009 3:06:14 PM : Underperform Start Price: $20.22 BGZ Score: +9.59

Financial sector earning

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Member Avatar timattox (99.48) Submitted: 9/15/2009 1:08:53 PM : Underperform Start Price: $21.82 BGZ Score: +18.51

3x large cap bear ETF
underperform reason: shorting the ultrashorts long term == free CAPS points.

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Member Avatar MintCoin (99.87) Submitted: 8/6/2009 5:12:08 PM : Underperform Start Price: $25.83 BGZ Score: +36.71

Re-shorting the ultashort ETFs

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Member Avatar kcanant (99.60) Submitted: 7/26/2009 6:09:47 PM : Outperform Start Price: $28.33 BGZ Score: -46.50

beware the ides of August

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Member Avatar mikemasland (97.66) Submitted: 7/16/2009 12:30:55 AM : Underperform Start Price: $33.55 BGZ Score: +62.66

broken

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Member Avatar kfisherprotege (33.61) Submitted: 6/30/2009 10:12:10 AM : Outperform Start Price: $35.64 BGZ Score: -67.80

alstry finally got to me.

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Member Avatar SteriodBear (88.53) Submitted: 6/27/2009 12:12:57 AM : Underperform Start Price: $35.10 BGZ Score: +66.25

Half-life period of leveraged ETF is inversely proportional to its volatility.

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Member Avatar timetodrive (< 20) Submitted: 6/17/2009 3:52:46 PM : Outperform Start Price: $34.14 BGZ Score: -63.23

Based on my call that the rally is going to see a pull-back over the next few weeks I am giving all Bear ETFs a thumbs up and all Bull ETFs a thumbs down in the short run. I am only invested in a small sampling of these bear ETFs but in order to raise my CAPS score I entered several here.

I own shares in this ETF.

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Member Avatar Matt8265 (94.71) Submitted: 6/12/2009 8:00:47 AM : Outperform Start Price: $33.50 BGZ Score: -61.49

As of today, my one favorite stock. I have 105K real money into BGZ as the clowns at CNBC and other pumpers are out o hot air.

Ca. crashes, GM crashes, rates rise, foreclosures rise, 600K unemployment and they are all telling you " Better than expected" ... DOW 12,000!

I say Dow 7200 next... Staying away from skf and faz as goverment i propping up bank stocks.

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Member Avatar JustAsWell (99.56) Submitted: 5/29/2009 3:00:12 PM : Underperform Start Price: $37.94 BGZ Score: +72.22

trying to boost my accuracy

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Member Avatar Patroz4 (< 20) Submitted: 5/12/2009 1:44:02 PM : Outperform Start Price: $39.89 BGZ Score: -75.75

Stocks are overbought, investors getting overly optimistic about end of a recession.

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Member Avatar gmXmkttiming (24.54) Submitted: 5/7/2009 1:04:13 PM : Outperform Start Price: $38.79 BGZ Score: -73.16

Fading every pick made by Ultralong

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Member Avatar slackerwealth (83.02) Submitted: 5/5/2009 12:15:17 AM : Underperform Start Price: $39.63 BGZ Score: +75.10

Market neutral arbitrage strategy. Has yielded around 200 points since mid March. The accuracy, as expected, is 50%. See blog.

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Member Avatar 881500 (87.63) Submitted: 4/25/2009 3:29:05 PM : Underperform Start Price: $47.78 BGZ Score: +90.00

here it is - my first conspiring to change my rating with a trade i woould not do in real account

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Member Avatar Alex1963 (97.72) Submitted: 4/23/2009 11:04:19 AM : Outperform Start Price: $50.57 BGZ Score: -94.64

Following GMX & my own feeling we're due for a market drop/correction
Direxion Shares ETF Trust Large Cap Bear 3x

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