$Direxion Daily Real Estate Bull 3X Shares ETF (DRN.US)$ to ...
$Direxion Daily Real Estate Bull 3X Shares ETF (DRN.US)$ to say that I'm frustrated is beyond comprehension. ever since interest rates have been cut real estate has done nothing but decline.
this sector is a major benefactor because it permits commercial properties to be refinanced at much lower rates it alleviates all of the concern about potential defaults.
yet common Sense does not prevail in the stock market
this should be trading at 14 and 1/2 to $15 right now but it's not.
end of rant
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36 yrs in the trenches, raised 100mil for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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Mint candy : I have been reading your opinions about DRN, so I would like to ask if I can still hold on it?
10baggerbamm OP : do you own it outright or do you have options that you're holding? if you bought call options the concern that I have is right now money is not buying the real estate sector it had a large move leading up to the first rate hike it was up like 15% for the quarter and this is a leveraged ETF so it had a significantly greater return. so if you're an options right now you've got money coming out of real estate and you have time gradually decaying on the option contracts.
if you have the ETF that you own outright and your patient and you can hold till first quarter second quarter next year I still believe you're going to see high teens to a low 20 on it because at some point we're supposed to have two sequential rate cuts by the end of this year another quarter and a quarter assuming that the union strike for ports does not extend a long time because if it does inflation is going to spike and the FED will not cut rates this year they'll either only do one cut or they'll do no cuts.
so this throws an X Factor of variable into the short-term movement of this ETF.
10baggerbamm OP Mint candy : pt 2
ultimately rate cuts will ensue and this strike in the ports will be resolved and at some point money is going to flow back into the ETF.
I have call options on it and I get hit with a double kicking the balls on the way down right now because I'm in the money with my call options which means every down tick I lose value on the contract and I'm losing time value it decays.
so if you hold it out right I believe you're going to be perfectly fine and I actually believe you can add more in here if you don't own it so if you never bought it you've gone from 14 to 1260 or wherever it is right now since the FED cut their rates over the past week and a half two weeks.
so I think you can initiate a position in here you've got a little bit of downside the risk again is the Port strike and then it's the Israel I ran but if you're in the market those are risks that you have to assess based off of how much you want to hold and within what industry.
so I hope this answered your question if you have additional ones please ask I know I can be very long winded in a response but I hope this addresses your question.
Mint candy 10baggerbamm OP : Thanks for the quick reply. Your guidance is always great. I will continue to follow you. I opened a position in DRN last month and will continue to hold it according to your advice. Thanks again![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
10baggerbamm OP Mint candy : I'm literally looking at doing another option position going out to March of next year selling a deep in the money put and then using that premium to go out and buy a call so that my net cash outlay is not that much. I think there's Market risk right now again with what's going on Israel I ran there's going to be a retaliation there's going to be a market sell off we have risk of inflation with the Port strike this all falls into the market climbs a wall of worry.
if you go back and you look at August 11th at Black Monday when the market tanked that was a buying opportunity when the Vix Spike that was a buying opportunity.
there's a lot of concern with Iran that has to be resolved I don't believe China wants a nuclear war with anybody I think they're smart enough rational enough leaders in that country that want to win from an economic prosperity standpoint and they clearly understand that the shit they manufacture is bought by the United States and if the US stops buying they're fucked plain and simple.
and I think Putin understands even though he's selling Iran weapons he doesn't want a nuclear war either because there are no winners there's no Genghis Khan that's going to conquer what's left.
so we have a failure in the United States between Biden and Harris they're a complete fucking other train wreck they're not leaders their followers and their failures their teleprompter readers is what they are so somebody's running the country behind their back that's why we need Trump to stabilize the world again.
he understands how to speak to other leaders face to face with respect and strength and together collectively the world prospers under Trump's leadership.
so November 6th when Trump is announced the winner back the truck up and buy the shit out of this ETF and buy drip, and I'm going to have a whole host of other stocks and ETF to buy assuming Trump wins and I'll be putting that out before the election so everybody has plenty of time to prepare
Mint candy 10baggerbamm OP : I didn't hold any options, I only have this ETF.
10baggerbamm OP Mint candy : you're fine then you've got time on your side
Mint candy 10baggerbamm OP : Great！I will definitely continue to follow your releases.
Follow Mr Market : What index does this triple leverage ETF track?
10baggerbamm OP Follow Mr Market : it holds real estate companies, reits
look
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