Direxion Announces Reverse Split 1 for 4 for TZA

 Our buy signal  on TZA has not been reversed as IWM or RUT did not make a new high today.

Dow made a new high , but Dow Jones Transportation is going down sharply. It does not matter to us whether the market goes up or down. We just follow the trend . The trend on RUT is still down.
IWM & RUT both went down and since TZA is a triple reverse ETF, it went up.

 

Direxion Announces Reverse and Forward Share Splits of 16 ETFs (3/15/2013)

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FOR IMMEDIATE RELEASE

BOSTON – March 15, 2013 – Direxion, a leader in alternative investment solutions, has announced it will execute reverse share splits for eight of its leveraged exchange-traded funds (“ETFs”), as well as forward share splits for another eight leveraged ETFs. The total market value of the shares outstanding will not be affected as a result of these splits, except with respect to the redemption of fractional shares, as outlined below.
The firm will execute a 1-for-6 reverse split of the shares of the Direxion Daily Energy Bear 3X Shares (ERY) and a 1-for-5 reverse split of the shares of the Direxion Daily China Bear 3X Shares (YANG), Direxion Daily Emerging Markets Bear 3X Shares (EDZ), Direxion Daily Technology Bear 3X Shares (TECS) and Direxion Daily Gold Miners Bull 3X Shares (NUGT) for shareholders of record after the close of the markets on Monday, April 1, 2013. The firm will also execute a 1-for-4 reverse split of the shares of the Direxion Daily Financial Bear 3X Shares (FAZ) and Direxion Daily Small Cap Bear 3X Shares (TZA), and a 1-for-3 reverse split of the shares of the Direxion Daily Mid Cap Bear 3X Shares (MIDZ) for shareholders of record after the close of the markets on Monday, April 1, 2013.
A summary of the eight ETFs undergoing reverse splits is as follows: (Please note the CUSIP changes, effective April 2, 2013)

ETF	CURRENT CUSIP	NEW CUSIP	RATIO
Direxion Daily Energy Bear 3X Shares (ERY)	25459W342	25459Y454	1:6
Direxion Daily China Bear 3X Shares (YANG)	25459W763	25459Y462	1:5
Direxion Daily Emerging Markets Bear 3X Shares (EDZ)	25459W482	25459Y470	1:5
Direxion Daily Technology Bear 3X Shares (TECS)	25459W318	25459Y439	1:5
Direxion Daily Gold Miners Bull 3X Shares (NUGT)	25459W250	25459Y496	1:5
Direxion Daily Financial Bear 3X Shares (FAZ)	25459W144	25459Y447	1:4
Direxion Daily Small Cap Bear 3X Shares (TZA)	25459W110	25459Y488	1:4
Direxion Daily Mid Cap Bear 3X Shares (MIDZ)	25459W136	25459Y421	1:3

Additionally, Direxion will execute a 3-for-1 forward split of the shares of the Direxion Daily Financial Bull 3X Shares (FAS), Direxion Daily Retail Bull 3X Shares (RETL), Direxion Daily Emerging Markets Bull 3X Shares (EDC) and Direxion Daily S&P 500 Bull 3X Shares (SPXL), and a 2-for-1 forward split of the shares of the Direxion Daily Real Estate Bull 3X Shares (DRN), Direxion Daily Latin America Bull 3X Shares (LBJ), Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD) and Direxion Daily Small Cap Bull 3X Shares (TNA) according to the following schedule:

• Record Date: Thursday, March 28th, 2013
• Payable Date: Monday, April 1st, 2013
• Ex-Date: Tuesday, April 2nd, 2013

A summary of the eight ETFs undergoing forward splits is as follows: (CUSIPs remain the same)

ETF	CURRENT CUSIP	RATIO
Direxion Daily Financial Bull 3X Shares (FAS)	25459Y694	3:1
Direxion Daily Retail Bull 3X Shares (RETL)	25459W417	3:1
Direxion Daily Emerging Markets Bull 3X Shares (EDC)	25459Y686	3:1
Direxion Daily S&P 500 Bull 3X Shares (SPXL)	25459W862	3:1
Direxion Daily Real Estate Bull 3X Shares (DRN)	25459W755	2:1
Direxion Daily Latin America Bull 3X Shares (LBJ)	25459Y652	2:1
Direxion Daily 7-10 Year Treasury Bull 3X Shares (TYD)	25459W565	2:1
Direxion Daily Small Cap Bull 3X Shares (TNA)	25459W847	2:1

Shareholders of record as of the close of business on Thursday, March 28th 2013, should expect to receive the additional shares after the close of business on the Payable Date, Monday, April 1st 2013. The shares are expected to trade at post-split prices beginning on the Ex Date, Tuesday, April 2nd 2013. Those purchasing shares that do not settle before the Record Date, but that are purchased between March 26th, 2013 and April 1st 2013 (inclusive), and do not sell their shares prior to April 2nd 2013, will be entitled to receive the additional shares, which they will receive on or about, April 4th 2013. As stated previously, the total market value of the shares outstanding will not be affected as a result of the reverse and forward splits, except with respect to the redemption of fractional shares, as outlined below.
The Depository Trust Company (“DTC”), the registered owner of all ETF shares, has been notified of the reverse and forward splits and has been instructed to adjust each shareholder’s investment accordingly.

Hypothetical Example of 1-for-6 reverse split:
1-for-6 Reverse Split

Period	# of Shares Owned	Hypothetical Market Price	Total Share Value
Pre-Split	120	$10	$1,200
Post-Split	20	$60	$1,200

Hypothetical Example of 3-for-1 forward split:
3-for-1 Forward Split

Period	# of Shares Owned	Hypothetical Market Price	Total Share Value
Pre-Split	30	$30	$900
Post-Split	90	$10	$900

Redemption of Fractional Shares and Tax Consequences for each Reverse and Forward Split
As a result of the reverse and forward splits, a shareholder of each ETF could potentially hold a fractional share. However, fractional shares cannot trade on NYSE Arca. Thus, each ETF will redeem for cash a shareholder’s fractional shares at the Fund’s split-adjusted NAV. Such redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse and forward splits will not result in a taxable transaction for holders of ETF shares. No transaction fee will be imposed on shareholders for such redemptions.
“Odd Lot” Unit
As a result of the reverse and forward splits, the ETFs will have outstanding one aggregation of less than 50,000 shares to make a creation unit, or an “odd lot unit.” Thus, each ETF will provide one authorized participant with a one-time opportunity to redeem the respective odd lot unit at its split-adjusted NAV, or at the NAV on such date the authorized participant seeks to redeem the odd lot unit.

• DOWNLOAD Direxion Press Release - March 15, 2013 pdf (121 kB)