$Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL...
$Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL.US)$ I want people to put this ETF on your watch list. this is a very interest rate sensitive basket of stocks. it's geared towards the housing industry so Home Depot Lowe's NVR home builders things like that are inside so lower interest rates have a direct correlation the more people move the more they do upgrades to their homes Lowe's Home Depot it's very obvious when you want to buy these stocks and that's a declining interest rate environment. you can look to see what's inside of them and you can pull a very basic chart and see the slide that has commenced because we didn't get a rate cut recently. it is reaching an oversold point only the riskiest people right now should put their toe in the water at this point. so what do I mean I mean maybe you made profit in a stock let's say it's $20,000 and you're looking for an idea I would put no more than five in at this point because it could trade down another three four or $5.. if the economic numbers continue to weaken you will see a reversal because it will anticipate a rate cut in September. and as you can see from a chart the rallies are months long they're not a one to two day Spike and then it sells off. so as you can see the downside is about 77 and a few pennies but this is a monthly chart that's why when it reverses and it will it's going to trend up for many months and you want to be in it because the returns are going to be enormous
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35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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104642775 : how much can buy?
10baggerbamm OP : well you have to determine your risk parameters because understand right now this is in a declining trend but there is near-term support approaching and it doesn't always touch those lines that's why I say you put a tow in because if there is a reversal chairman pal for example is speaking today if something is said where he's perceived more dovish all the interest rate sensitive stocks will immediately reverse. and the irony is this Bank stocks and you can look at my post early last week where I told everybody when to enter bnku and DPS in retrospect I made a nice profit but I sold early and they're still rallying so they are highly interest rate sensitive which tells me that at some point these are going to reverse too this basket.
10baggerbamm OP 104642775 : so you see the price you have to decide how many shares you want to buy but you need to be patient this it has the ability to reverse and put $10 on in a day but that's not the trade that I am looking for I'm looking for a multi-month movement back to probably around the 130-140 level
10baggerbamm OP : how I am going to do this is not suitable for everybody but I am going to sell out of the money naked puts so I am looking right now at the 74 July 19 puts and collect 2.10 per contract. and I'm perfectly fine getting put the ETF at 74 I don't think it's going to hit it I think they're going to expire worthless so I collect the premium and I will now commence doing this every cycle of the options to collect the premium because I think we're approaching a bottom. and then I will just like I said put my toe in the water and nibble on the stock I think there's maybe a couple dollars downside from here but I'm willing to take some risk and buy a few shares just to take an initial position