As you know, when I try to trade the trend of the QQQQ, I buy QLD (ultra long) or QID (ultra short) ETF’s. These ultra ETF’s are designed to move twice as much as the underlying index they track. Well, less well known is that there now exist 3x ETF’s, designed to move three times as much as the underlying index. I knew about the recent emergence of these Direxion ETF’s, but was surprised to see how quickly they have caught on. I have now located 16 of them, and 8 of them traded more than one million shares each on the NYSE on Friday. Here are the ones I have found. Bull ETF’s: FAS, BGU, TNA, ERX, EDC, MWJ, TYH, and DZK. Bear ETF’s: FAZ, BGZ, TZA, ERY, EDZ, MWN, TYP, DPK . One can even trade options on most of these! Remember, the leverage works both ways, they aim to go up or down at 3x the speed of the relevant index. Still, if I have a good idea of the trend, these ETF’s may prove better than going to the casino and putting everything on black or red………..
Meanwhile, the GMI