Direxion Shares ETF Trust Small Cap Bull 3x (TNA)

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.

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

cheese pick of the day

running

I think the small caps could be what lead us out of the recession for good. This sounds crazy and probably is, high risk to bet on this ETF but the potential is there

small caps will continue to lead the way

It's almost fall, and a massive deja vu is coming soon to a market near you.

Good for now

When the overly optimistic FOMC says that household spending will be "constrained" by sluggish income growth, ongoing job losses, lower household wealth, and tight credit AND Shanghai stocks hit a seven-week low, then you know this bear market rally is finally over!

QUICK! Pick a reason to exit a market that has risen too fast and gotten too expensive. Here are three to choose from: buying power is getting exhausted according to DeMark indicators; daily sentiment indicators are 88% bullish; RSI’s and oscillators are over extended.

bear

3x Ultras lose money over time, and are only for day trading or extremely short term.

If only I knew how to say "no" in more than 5 languages, now would be the perfect opportunity to implement the word....

UltraLong

decay

Volatility kills leverage.

broken

Market is heading south in July

Direxion Shares ETF Trust Small Cap Bull 3x (TNA)

TNA (hehe) bets on Small Caps, the most volatile kinda of cap, (other than micro, I guess) leveraged 300%. A GREAT short if the market drops.

Time will tell,
assafer

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