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TZA
Posted: Wed Apr 03, 2013 3:04 pm
by Reub
If we are about to enter a correction or worse, then one way to play it is with TZA, Direxion Daily Small Cap Bear 3X Shares. Any kind of a downturn would be rewarded handsomely with this ETF. (Up 5% today).
Re: TZA
Posted: Thu Apr 04, 2013 11:18 am
by rocketdog
You have to be super careful about these inverse 3x leveraged funds. They are only intended to be held for a single day, so any attempt at a long-term gain would require daily trading. It's gambling, pure and simple.
Re: TZA
Posted: Thu Apr 04, 2013 11:27 am
by Reub
Why only for a single day?
Re: TZA
Posted: Thu Apr 04, 2013 12:42 pm
by melveyr
Reub wrote:
Why only for a single day?
Well you can hold it for longer, but it is only meant to have 3x movements of the single days, not the weeks or months. If the stock market is down 20% over the next year, you can't count on TZA being up 60%. It will be a very different number. It depends how choppy the daily action was that led to that 20% decline.
Re: TZA
Posted: Thu Aug 15, 2013 12:44 pm
by Reub
TZA looking like an option? Up about 5% today.
Re: TZA
Posted: Thu Aug 15, 2013 12:50 pm
by Pointedstick
Reub wrote:
TZA looking like an option? Up about 5% today.
On the other hand, it's still down 51% YTD. And also down 32% from when you started this thread.
Re: TZA
Posted: Thu Aug 15, 2013 5:22 pm
by Reub
PS, I never said that the time was right to buy it. I'm just seeing it as an option if someone believes that the stock market is ready for a downturn in a VP play.
Best Regards!
Re: TZA
Posted: Fri Apr 04, 2014 1:58 pm
by Reub
I am giving another hard look at TZA for a number of reasons. First, "sell in May" is approaching rapidly. Secondly, mid-term election years are notorious for poor returns. Third, we have not had a meaningful, health-restoring correction of 10% or more for a number of years. Lastly, I believe that the federal government is propping up the economy for the purpose of increasing their advantage in the coming November elections, after which they won't care anymore. Is today's large stock selloff an indication of what's to come? Up 7+% so far today.
Re: TZA
Posted: Fri Apr 04, 2014 2:41 pm
by tnt
Reub wrote:
I am giving another hard look at TZA for a number of reasons. First, "sell in May" is approaching rapidly. Secondly, mid-term election years are notorious for poor returns. Third, we have not had a meaningful, health-restoring correction of 10% or more for a number of years. Lastly, I believe that the federal government is propping up the economy for the purpose of increasing their advantage in the coming November elections, after which they won't care anymore. Is today's large stock selloff an indication of what's to come? Up 7+% so far today.
Reub, devils advocate here, you can make that case on any day. Also, the market does not have to drop, it can move sideways in a choppy motion to absorb the QE 3 supported returns of the past multiple years. TZA can only be viewed one way, a pure gamble since no one knows the future and there are two many variables to make it a calculated move. I suppose the chances are 50/50, do you feel lucky?
Re: TZA
Posted: Fri Apr 04, 2014 8:51 pm
by dualstow
I miss Ryan Melvey and his wisdom. Hope he's doing alright.