Summary of ETF positions: TZA and TNA

I thought I would make a short post here on what is going on with some of my favorite ETF's both Longs and Shorts. Let's start with the ETF Ultra Short TZA. TZA has hit a new low this week going as low as $39.36. This is a 52 week low for it, although the ETF has been only in existence since beginning of November. If you by chance still own this triple play you are in for more pain as I see this going much lower before a significant market pullback gets it to rise again. Here we sit on the Dow at 8,017 as of the close Friday, and it is possible that the Dow could go to 9,300 again. This would be a 16% gain for the Dow and the S&P would gain likewise. Since this is a triple play, meaning that for every % Gain or Loss in the market these gain or Lose 3%, it would mean a 48% possible loss on TZA from here. Now that is real pain. It's high since November has been $156.58/share.

On the contrary side is TNA. This is the Ultra Pro Long position of the Russell Small Caps. This could go up as much or more than 48% from here. That would be delightful for those owning it, which I do currently. As momentum gains in the direction of rising prices of these triple plays, they often surpass any reason and usually go straight up at their extremes. TNA closed Friday at $21.94, and if we assumed a 48% rise this ETF would go to about $33/share. However this ETF has been as high as $58.87 when it too was introduced the beginning of November. I could see TNA going much higher on momentum than $58/share. So when this market really turns around, you will want to own TNA.