ETFs: Where Will Economic Indicators Lead Us? (TNA, TZA, IWM, QQQQ, DIA)

Isn’t this fun? Up 200, down 200, up 200, down 200 – wash out your savings, rinse and repeat!  What a total sham of a market we have these days with machines running us up and down on virtually no news at all.  Yesterday they would have you believe that Ben Bernanke caused a sell-off.  How ridiculous is that?  He didn’t say one thing that he didn’t already say in the Fed Minutes that were released on the 14th, which were the notes from the meeting of June 23rd so for analysts to get on TV and say “the markets were concerned by the Chairman’s comments” is beyond stupid – it’s criminal negligence. 

That’s Can Not Be Correct and other media outlets are supposed to have something that is called a Public Trust, which means that broadcast licenses are a national resource that are meant to be used responsibly.  I know, that almost sounds like a joke but it’s not – we used to care about these things…  Now the public is treated like cattle and is simply stampeded to the slaughterhouse at the whim of the media and the Big Money that pulls their strings and our equally puppet Government spend their days fighting over who gets to wear the captian’s hat on the Titanic.  Maybe it is a joke – too bad it’s on us!  

That’s why we keep things light over at PSW – we know it’s a crock but, as long as it’s a crock we can figure out, we’re happy.  I mentioned yesterdaythat Tuesday morning’s Alert to Members had 2 long plays on the Russell that made over 40% each in a day.  Well yesterday we shorted the Russell at 9:42 with the Direxion Daily Small Cap Bull 3X Shares (NYSE:TNA) $32 puts $1.60 and IWM $60 puts at $1.32.  It wasn’t as exciting as Tuesday but the (NYSE:TNA) puts made $2 (25%) and the iShares Russell 2000 Index (NYSE:IWM) puts performed much better, also hitting $2 for a 50% gain on the day.  We have now learned that (NYSE:TNA) and the Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA), despite looking sexy, are not as good to play for direction as the (NYSE:IWM) puts and calls.  This is due to the wide bid ask spread and low liquidity, which means the Market Maker can rob you blind by stealing nickels and dimes from you every time you buy and sell – this is something you should always be aware of when trading options on ultra-ETFs. 

We made a couple of attempts to go long, first with PowerShares QQQ (NYSE:QQQQ) and then with DIAMONDS Trust Series 1 (NYSE:DIA) but we got…… This article will become free after 48 hours. To read the rest of this article now, along with Phil’s live intra-day comments, live trading ideas, Phil’s market calls, additional member comments, and other members-only features – Subscribe to Phil’s Stock World by clicking here.

We will post any updates as they become available.  You may also take a look at our ETF categories for more insight on each ETF below:

Direxion Daily Small Cap Bull 3X Shares (NYSE:TNA) Visit the (TNA) category: HERE

iShares Russell 2000 Index (NYSE:IWM) Visit the (IWM) category: HERE

Direxion Daily Small Cap Bear 3X Shares (NYSE:TZA)  Visit the (TZA) category: HERE

 PowerShares QQQ (NYSE:QQQQ)  Visit the (QQQQ) category: HERE

DIAMONDS Trust Series 1 (NYSE:DIA)  Visit the (DIA) category: HERE

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