While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
Today I am going to make a suggestion on an ETF.? Actually, it is a triple leveraged inverse ETF.
It is the Gold Miners 3 time Leveraged bear ETF, with the symbol DUST.
As you know, gold and the miners have been on a tear lately.
However, the move has been too fast and a pullback now would not be out of the question.
The other thing I like about this instrument is that it has weekly options, although I will not suggest you sell calls against
the position.
My suggestion today is to buy DUST at the market, which is $4.50 as I write this.
Use a 1/2 allocation, which works out to 1,000 shares or just under $5,000 for the nominal portfolio.
For a bottom to form in DUST, I would expect a move up to the $6 area.
We will exit quickly if this trade appears to be wrong, but if I am right, then DUST should get a bounce from these levels.