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... dreadwin

For all the gyrations, we're (still) in a 20 point SPX trading range, right? Not much profit opportunity for either side, I think. Unless you're really good, and I'm probably not that good. Remember my $RVX trendline chart?

http://www.screencast.com/users/dreadwin/folder

We're still on the trendline. Hopefully when I update it, I'll spell things better 🙂 My prediction for tomorrow is more sideways. There will be a chart later. Probably.

... dreadwin

Yeouch! Here's a thought you might consider. Instead of buying large amounts of TZA and holding (which is what I assume you are doing) think about this:

What is the maximum amount of $$$ you are willing to lose on this trade?

Use that $$$ (or $$$$ or maybe $$$$$ if you're totally loaded) and buy calls on TZA / puts on TNA / puts on IWM (depending on your tolerance for leverage). Wait until we get a close of $RUT above the BB, buy at the end of the day, sell in one or two days. Or if you're stubborn like I can be, wait until either the options become profitable or opex makes them worthless. Either way, the maximum you have lost is what you committed to up front. And it will be a smaller %age of your overall trading capital.

... Earl of

Dreadwin,

I can do that. Thanks!

... gcocks83

HI Dread, I am getting killed in TZA at cost of 10.62. I am considering adding but will wait for the BB.

... monicadern

You have amazing discipline dreadwin.

... dreadwin

Wait until IWM touches the upper BB to add more TZA. We're close!

... dreadwin

I've been on the sidelines since February opex, and that seems to have been the right move. So far 🙂

... dreadwin

His archives are all there, if you want to look. My opinion on Carl is that if the underlying trend is bullish, he's really good. He did see things start to fall apart, and was within 10 SPX points of the nailing the February bottom, and nailed the trend change day correctly. My recollection is that he got clobbered by the relentless parade of bad news in fall 2008. He does occasionally short the market, too.

... gcocks83

Thanks Sundancer, it is certainly looking bullish.

... SC

This tip off will be filtered out and ignored by the bears.