Monday, July 26, 2010

Bookkeeping: Sold Direxion Small Cap Bull 3x (TNA) as S&P 500 Nears 1113

I mentioned Friday I went into Dirextion Small Call Bull 3x (TNA) once S&P 1100 was breached with initial target of S&P 1113 (the 200 day simple moving average).  From that post:

Preface: As mentioned earlier I would be likely to go long TNA ETF on a break of S&OP 1102; I've done so - initial target will be S&P 1113.  I had a very small short TNA which I obviously closed out. 

We are here (high of day 1112.80), so I am selling the position for a 6.5%ish gain from late Friday.   I used a 4.25% allocation.

[click to enlarge]

That was almost too easy, but I am not complaining.

The next target for the S&P 500 will be 1130 (mid June highs).  If the market can slice through this resistance I will be looking to buy back the TNA around 1115+ (using a break of 1113 as a mental 'stop out' of sorts), and this time will be aiming for a 15 point move.  Identical trade thesis to what I just employed.

If the market pulls back, I'll consider repurchase nearer to 1100 again to see if I can repeat the trade.

(below is the S&P 500 using simple moving averages)

No position


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