Using triple play ETF's to trade in the stock market.

Let me start first with what a Triple play ETF is. It is often noted as "3x". It is an instrument, which is based on an index of stocks designed to give you triple the swing of the based index. If the base index of stocks moves up 1%, then the Long ETF would give you nearly a 3% gain and the Short would give you a 3% loss. This instrument is most useful when the overall stock market is in a tight range of about a 2% movement over the period of a week or longer. We have been in that period the last few weeks.

I have gone through the list of all ETF's specifically looking for these Triple plays and will list them alphabetically below along with the basket of stocks they are based upon and whether they are a Bull (Long) or Bear (Short).

DZK Developing Market Bull 3x
EDC Emerging Market Bull 3x
DPK Developing Market Bear 3x
ERY Energy Bear 3x
ERX Energy Bull 3x
FAS Financial Bull 3x
FAZ Financial Bear 3x
MWJ Mid Cap Bull 3x
MWN Mid cap Bear 3x
TMF 30 Year Treasury Bull 3x
TMV 30 Year Treasury Bear 3x
TNA Small Cap Bull 3x
TYD 10 Year Treasury Bull 3x
TYH Tech Bull 3x
TYO 10 Year Treasury Bear 3x
TYP Tech Bear 3x
TZA Small cap Bear 3x

If you have been reading my Blog you know I currently own TZA and also some FAZ shares, as I believe we are going to have another correction and eventually test the low 7,000's on the Dow and possibly retest the 6,440 low of March. That will mean another loss for those long the market of 12% from here or even possibly 24%. Having triple plays if this should occur would mean gains of between 36% and 75%. Of course if I am wrong and the market goes up an equivalent amount I could lose another 36% or 75% as well. I just don't think I am wrong here. But the good thing is that there will be an answer as time will tell!