Amazing how strong this market is. Just bought 15 TZA (3x small cap ultrashort) calls for Jan 2013, 18 strike for 3.40. Here's why:
1. Crisis in Europe far from over. Spain's bonds are trading over 7%. Italy on deck. Greece runs out of money next month. 2. US Fiscal cliff at YE. 3. US Presidential election may end up a tie, which throws it into the House. 4. Municipalities declaring bankruptcy. 5. China slowing down, housing bubble possibly bursting. 6. Student loan bubble on the verge of popping. 7. US growth slowing. 8. Consumer confidence down. 9. US Healthcare regulations up in the air, causing small businesses to retrench. 10. Technically, market has hit its last resistance point.
TZA hit 58 on Aug 19 last year. It is trading at 18 now. Profit on calls would hit $55k if market behaves as it did last year.