Quote Originally Posted by Billy View Post
Dave
I have no other thoughts that the chart is much distorted by the compounding decay factors on both TNA and TZA. We don’t need to project targets and certainly even less with 3-years triple leverage ratios for a move that could last only a few weeks.
IBD RS rating is 15 for TNA and 13 for TZA. Both were at 14 on Thursday, meaning that 86% of individual stocks do better relatively than both TZA and TNA! IWM RS rating is 57 or doing better than 57% of all stocks and much better than the triple leverage ETFs. This is the end-result of choppiness decaying effect. Only a sustained trend can change that, up or down doesn’t matter. We just need to be in the correct triple leverage instrument at the start of the next big move and don’t need to target anything. The 20DMF is a much more reliable guide.
Billy
Thanks Billy, I really didn't know what to make of the chart. With two snap shots in time I wasn't sure about the decay effect. Just a thought process really. Wondering in the event of a black swan event and the DOW running down to the March 2009 lows, what would the value of TZA look like.
Dave