A lot of people have been mentioning that the triple leveraged funds from DIREXION do not trade as expected. Some people have gone so far as to call them a scam. I like to daytrade them because of the extraordinary volatility. If you read the prospectus, the funds are designed to correlate only on a daily basis.

From the prospectus “No Fund attempts to, and no Fund should be expected to provide returns which are a multiple of the return of the benchmark for periods longer than a single day.” If you have traded these funds, you should have received a prospectus from your broker. See page 8 for a more detailed description of how how these funds work before you decide to trade them.

Technical Analysis Video 2/11/09 from brian shannon on Vimeo.