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Paul Mosgovoy
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  • Small Caps And The TZA Halt Their Move 7 comments
    Jun 27, 2014 1:16 PM | about stocks: TZA

    The Direxion Russell 2000 Bearish 3X ETF (NYSEARCA:TZA) penetrated our discretionary stop of 14.32 early in the session.

    For those that have been following for a while, the stop method should be apparent.

    There is an initial stop set that when hit sets up a review of the position.

    If it is determined that the market position is not likely to reverse, the position is exited.

    If however, there is a possibility of a reversal, then a new stop is set that now becomes a hard stop: Non-negotiable.

    At no time are any of the stops set below the original stop location that was set at the time of the original entry.

    (click to enlarge)TZA Hourly

    Chart by TeleChart

    This method allows for a common fact that there will be errors in the decision process. It automatically eliminates the requirement to be perfect.

    As can be seen from the above chart, there is indeed the possibility that TZA will reverse and move higher from its present point.

    Therefore, the hard stop is set at the low of the day: 14.19

    Disclosure: The author is long TZA.

    Themes: Small Cap, IWM Stocks: TZA
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Comments (7)
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  • zaw77
    , contributor
    Comments (54) | Send Message
     
    Thx for update Paul, next week will be interesting.
    27 Jun 2014, 02:21 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (117) | Send Message
     
    Author’s reply » Thanks,

     

    I was busy with other things and before I could get to TZA to sell at 14.19, I see that it might be reversing from here.

     

    Will re-set and sell if 14.19 is touched again.

     

    Paul
    27 Jun 2014, 02:46 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (117) | Send Message
     
    Author’s reply » Looks like it is beginning to climb higher from here......
    27 Jun 2014, 02:48 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (117) | Send Message
     
    Author’s reply » Looks like the three-day correction may be over.

     

    Either way, 14.19 is the stop.
    27 Jun 2014, 02:54 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (117) | Send Message
     
    Author’s reply » Looks like it is pulling away quickly.........

     

    Risk is low at this point. 14.28 with a 14.19 stop.
    27 Jun 2014, 02:59 PM Reply Like
  • zaw77
    , contributor
    Comments (54) | Send Message
     
    Exactly three days correction, but on the other hand IWM can test the resistance near 120. Next week will see I stay in so long as TZA trade above $14.
    28 Jun 2014, 08:15 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (117) | Send Message
     
    Author’s reply » Looks like TZA has reversed off the 14.08 low from Friday.

     

    Long TZA and charts to be posted soon.

     

    Paul
    30 Jun 2014, 09:48 AM Reply Like
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