TZA is a 3x short the Russell 2000 ETF. The Russell 2000 chart is facing VERY STRONG resistance at 750. RUT is at 741 now so we are close. I started positioning into a TZA a tad trade too early but my idiocy can help your precision. Once the RUT ticks 750 though (it might go a little over but do NOT be fooled -- this market, the DJIA, SPX, NASD, RUT is so damn overbought on the charts that it is incredible!!!), the talking heads on TV will be screaming about this "great new bull market" blah blah blah. Ignore them and buy TZA at that euphoric and bullish moment because 750 will basically be the top for a long time. It could go sideways for a week or two at that level but the RUT is likely going to dip, after hitting the 750s, back down at least 8-10%. This means, if you bought TZA right as the RUT hit 750, you will make 24-30% return on TZA as it is 3x short.
I will be making the biggest confidence bet of my trading career when the RUT ticks into the 750s this week. Boyz, it will take balls but this is a unique buying opp for 24-30% return on investment in a very short time. The market has been grinding up slowly from the 200 dma on the RUT weekly but it will pull back to that 200 dma on said weekly, likely giving you 30% if you back up the truck on TZA at RUT 750 this coming week.
JMHO but I feel so confident with this one. If anyone wants to talk trading, my e-mail addy is this handle at yahoo dot com.
Be contrarian :)
Lots of fear today. Probably we get a moderate to decent day tomorrow. Might wnat to think about your profit taking strategy now :))))))
GRATS, all who played TZA!
hmmm, Seeking Alpha seems to agree with you.
I trade a (now) Roth IRA so I can't short, but this definitely is an option. My 2 cents,...the secret squirrels will keep propping up the market until November, then it's every trader for him/herself. What's keeping the market floating now? There is a total disconnect between DC, WallStreet, and the rest of us slugs and what's really going on here wrt unemployment or underemployment numbers.
It's getting harder to find 'gems' these days, that's why I continue to like bio's since they seem to do their own thing. I swing trade, do not daytrade, since I like having some free time for other things. And I'll trust the 'science' over any analyst or talking head.
The meets the number one suckers bet of the week or any week for that matter going back to, hell its been to long to even remember now. lol.
I day trade TZA on some given days premarket morning sessions to catch the after hours and premarket stupid money.
Granting the short term excessive optimism of the pros and active traders and noting the more upbeat media coverage of the economy as also noted by Ned Davis Research last week, the general slow market move up is, on balance positive as it acts to fend off euphoria that dooms bull markets. But don’t take my word for it, its what the market have to say and have been screaming!
A very friendly trend:
Shorts in this market really need a reality check, but they don`t trade on any clear form or reality usually, only that the price is up or was up.
Take CYCC shorts, they`er boxed into a loosing position. Will they cover at a reasonable limit, have they covered at a reasonable limit, no because they have deep institutional pockets. Its not their money so they hang in and continue to further short new positions setting off stop orders hoping only to outlast as they bring down the share price so investors finally sell out and they win. Don`t see that happening.
karmic, if i am wrong, i will be the first to come back here and eat crow. this call has been made, not just based on my analysis of the rut but also the other indices. this is a sweet upcoming moment to go contrarian and profit. it will take nerves of steel but the reward will, imho, be worth the cold sweat.
enjoy your posts vis a vis the medical science behind this promising little bio. keep em coming. just don't let her run big before i cover and go back long. lol! forgive the lower case letters n type-os. i have an italian liquer in one hand and am feeling no pain right now :)