Wednesday, June 30, 2010

TNA purchase - $36.45

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Well, that was quite a melt down, wasn't it?  Geez.  I didn't think they would ever stop selling.
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Anyway, today was the end of the second quarter and I've got to think the motivation to continue selling tomorrow will be different.  If you wanted or had to sell, well, today was your day. 
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But tomorrow is a new day and a lot of those folks who sold today have a lot of cash in their accounts to reinvest tomorrow.
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So I bought TNA, which is a 3X bullish ETF.  Basically, it is a bet that the stock market goes up but, if correct, it goes up 3 times faster.  Now the flip side, of course, is that if the stock market goes down, TNA will go down 3 times faster than the stock market.
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I wrote a post about this not too long ago, but I will mention it again now.  The miners are in a secular bull market.  Over time, over years, they continue and will continue to go up.  The stock market, however, is in a secular long term bear market.  And over time it will go down in price.
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If you own a mining stock and continue to hold it, it will (should) make a nice return for you.  In other words, and only in my humble opinion, this is not to sell.
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Click on the chart to ENLARGE
                                                              

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