Direxion Shares ETF Trust Small Cap Bear 3x (TZA)

I will own till year end to hedge my long positions. High end of trading range for S&P along with lower volume and increased volitility.

We are in the high end of the trading range for the Dow and S&P. TZA should hit 14 within a month.

shorting all ultrashorts, bears, and other "leveraged" funds.

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.

GDP numbers were not as good as you would expect after you break them down. Correction is coming if not now than sometime in Q1 2010.

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

Free points and if you're lucky you can short these in real life Just don't over-leverage yourself in these. They're highly volatile in the short term. Trust me from experience. I sold short some of the 3x bears 3 weeks before the bottom. FAZ shot up 300% and I got a margin call twice. Luckily I had enough (just barely) to cover them and overtime profited from it. Just make sure if you do short these, that you have the surplus funds to cover if it spikes 300% to 400%

3x cheese play.

Second verse same as the first.

Bank overpriced

After market wide pull pack last 10 days look for short term growth

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

Just hedging against pullback. In general, I don't believe in any ultrashorts, but it's never a bad idea to put 1% of your folio into a hedge, either in real life or in Caps. I have greenthumbed more than 100 bullish picks, so I can well afford to make one or two losing bets. Buy a hedge and sleep peacefully.

bear

Re-shorting the ultashort ETFs

decay

broken

Too much negative financial pressure, and the bottom is definitely still to come.

alstry finally got to me.