IB Net Payout Yields Model

Trade: Bought Direxion Small Cap 3x Bear

Slow to report this but yesterday we bought the Direxion Small Cap 3x Bear (TZA) in the Growth, Hedged Growth and Opportunistic Portfolios. The purchase in the Hedged and Opportunistic Portfolios amounted to nearly 10% of the portfolios though the Opportunistic purchase was just to offset the margin currently in that count bringing the net bullish investment to just 100%.

TZA was purchased because it was and is extremely oversold having an RSI of 25 yesterday and a CCI below -100. Both signs that a reversal is likely. Small caps have just been too hot lately so we expect at least a minimal pullback.

For the Hedged Growth Portfolio this is on of the first hedges/shorts that we've used in the last year since the March 9th low.


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