From my previous charts, one lesson learned is that both $RVX and $RUT tend to respect the BB's. Since you're only 1% down on TZA, you have the luxury of patience.
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?
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.
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 $$$$ or maybe $$$$$ if you're totally loaded) and buy calls on TZA / puts on TNA / puts on IWM (depending on your tolerance for leverage). Wait until we get a close of $RUT above the BB, buy at the end of the day, sell in one or two days. Or if you're stubborn like I can be, wait until either the options become profitable or opex makes them worthless. Either way, the maximum you have lost is what you committed to up front. And it will be a smaller %age of your overall trading capital.
That's the one 🙂
This graphic might be more appropriate then:
http://outdoors.webshots.com/photo/263648601001…
Dreadwin,
I'm not exactly down 1%.
I was underwater at the time when I sold my TZA a week ago. Now I have much of it back 43 cents cheaper.
I lost track of my cost basis. If anything, I have the luxury of being nervous 🙂
Also:
http://www.icanhasmotivation.com/patient-bear-w…
From my previous charts, one lesson learned is that both $RVX and $RUT tend to respect the BB's. Since you're only 1% down on TZA, you have the luxury of patience.
http://www.icanhasmotivation.com/patient-bear-w…
For all the gyrations, we're (still) in a 20 point SPX trading range, right? Not much profit opportunity for either side, I think. Unless you're really good, and I'm probably not that good. Remember my $RVX trendline chart?
http://www.screencast.com/users/dreadwin/folder…
We're still on the trendline. Hopefully when I update it, I'll spell things better 🙂 My prediction for tomorrow is more sideways. There will be a chart later. Probably.
Yeouch! Here's a thought you might consider. Instead of buying large amounts of TZA and holding (which is what I assume you are doing) think about this:
What is the maximum amount of $$$ 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.
Dreadwin,
I can do that. Thanks!
HI Dread, I am getting killed in TZA at cost of 10.62. I am considering adding but will wait for the BB.
You have amazing discipline dreadwin.