S&P 500 "Crash and Burn" Game Plan (TZA)

Get ready for the S&P 500 to "Crash and Burn" just like the 1990 low budget Sci-Fi film starring Megan Ward and Paul Ganus (who? -- exactly).

Your weapon of choice -- Direxion Daily Small Cap Bear 3X Shares (ETF) (NYSE:TZA) trading today at $7.45 a share.

The 411 from TraderMark at FundMyMutualFund.com

So if the S&P 500 breaks 1140 I plan to be aggressive with index positions (short TNA ETF in the simulator but long TZA in the real world, SPY puts) and try to make my hay for this 4 week period. 

Thus far 2 weeks in, we are roughly flat with our index (Russell 1000).  If I can catch these 16 points (assuming it happens) we can go back to a quiet state of affairs after any swoosh down.  *note: If after breaking 1140 to the downside, we jump back over 1140 I'd be stopping out of those index short positions to control risk.

About the TZA:
Direxion Daily Small Cap Bear 3X Shares (the Fund), formerly Direxion Small Cap Bear 3X Shares, seeks daily investment results of 300% of the inverse (or opposite) of the price performance of the Russell 2000 Index (the Small Cap Index). The Small Cap Index measures the performance of the small-cap segment of the United States equity universe and consists of the smallest 2,000 companies in the Russell 3000 Index, representing approximately 10% of the total market capitalization of the Russell 3000 Index

SOURCE: http://www.fundmymutualfund.com/2010/03/strategy-for-downside-move-in-s-500.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FundMyMutualFund+%28Fund+my+Mutual+Fund%29