Direxion Daily Small Cap Bull 3X ETF Stock Discussion

10baggerbamm OP : Tom Lee was just on he's saying a 40% increase in the Russell by the end of the summer so I believe what Tom Lee says most of the time if you believe him on this trade then you need to be buying TNA here at $43.81 because a 40% increase on the Russell would put this basket of stocks at over $120
so buying a January 60 call for about $3.25 would be the trade.

10baggerbamm OP : I just bought the January 60 calls. again I'm not 100% sold on this rotation I'm really not I listed my viewpoint because you need to have rate cuts of 150 basis points to 200 before the small caps realize any benefit on their books from refinancing their debt. that being said I believe in Tom Lee I believe there's a lot of people that are smarter than myself and he is one so I bought 50 contracts.. the January 60 calls 2025.. so let's see what happens.

10baggerbamm OP : pt 2
Cramer brought up a very good point, you need to be aware of it you probably could find what he just said on his Twitter page some point in time today because a lot of people if we get profit taking they're at risk of getting trapped and you have to ask yourself would you rather be trapped in Amazon down 10% because the short-term purchase one against you or would you rather be trapped in a highly leveraged small cap that's losing money that's very dependent upon financing to continue operations? the choice is yours it's your money.

71879485 : sell sell sell

Cisco seller : I already sold most of my position very good points

10baggerbamm OP : as a follow-up below is an 11-year chart that's a long long time most people think nowadays of investments that will last a lunch time let alone a year so here's 11 years. we've also had some fall starts what you see is a range bound index you can clearly see the define lows and the defined highs and if we get a reversion to the mean it puts it in a low 60 6364 you can pretty much take that to the bank. what you need to understand also is with the Russell you get a lot of substitutions so the companies that do well say super micro for example they get removed from the Russell and they're going to the NASDAQ 100 and now in place of it is going to be another small cap company that's losing a tremendous amount of money and that's why you tend to see this index very range bound over an extended period of time because the winners get purged and the the losers tend to stay in the index and then the companies that are added are generally companies losing money. so the Russell is a stepping stone from a basket of stocks you go from the Russell to the NASDAQ 100 or similar. also understand just as a cautionary note we're down a dollar today which is trivial compared to what the gain was just yesterday there's a lot of profits in the past week in this basket if there's any economic shock any bad news story any global event you could see 25 30% of the gains just from yesterday erased on profit taking nothing less. so you have to ask yourself are you comfortable being down three four points in this basket of stocks. because if you don't buy into the big picture which is an 11-year chart below and that this reversion to the mean can take 12 to 18 months you probably should not be looking at this basket of stocks.

71879485 : sell

10baggerbamm : be patient 64...

102398820 : Will go until at least 43.00 this time