Technology Bull 3x (TYH)

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
ERX/ERY
DRN/DRV
TYH/TYP
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%
Remember, because of leverage, your broker will require to reserve alot of capital.

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.

loaded

Offset my inverse ETF risk/losses w/o risking accuracy hit x3 for the point differential -- mkt is just too erratic presently to not have some kind of insurance holding gains and I don't see what good CAPS is if you just stop making new picks to preserve a score/rating --- but I do have an ego that won't let me fall below 'all-star' or give up my 'yes' charm at work...Tech & Financials only outperforming leveraged fund sectors Id consider though and only on CAPS

UL

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

tech stalwarts

drop these markets!

I believe tech will go up faster than the S&P long term. But this one is overheated, and leveraged ETFs with this kind of VOL will decay faster than the the anticipated appreciation.

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!

3x bears don't trade in triple digits for long.

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.

Riding Ultralong's coattails

3x leverage on the upside for an overbought market. not to mention the fact that Tech acts as a sort of ultra on the stock market as is. Even if the market does not drop as I expect over the next few months the leverage will destroy them in the long term

They didn't have warp speed technology like this in Star Trek so why should I believe it now? Apple cannot single-handedly drive this up every single day without so much as a pullback. I call shenanigans!

UltraLong

Volatility kills leverage.

The lone advantage the US has over the rest of the world is technology. China has cheaper labour, Canada has natural resources, Europe has better balance sheets...but the US has the most advanced technology and R&D in the world. This is the only way for the US to keep pace with the planet. The next 25 years will see more technology advances than the previous 2,500 years and the US will lead the way. And I will triple my gains in TYH.

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

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.

Tech is ready for a come back and this ETF is as a risky, but hopefully rewarding way to bet on it.