Hi Aimster,
Great idea for sort of a "swing trading" type account....an account that one does not intend to hold more than a few days, or a few weeks at the most.
In the past I traded the 2X 200% Long and Short ETFs from ProShares in almost this manner. Not with the intent of buying more funds, but with the intent of making some quick profits. I have only done this in a trading range type market. In the past I have used the Wm%R technical indicator and a 21 day moving average to decide whether a 2X ETF was in a very OverSold condition before making a purchase. Purchased them using a contrarian, countertrend strategy.
Since we might be in this trading range market for some time, because the market has come a long way in a relatively short period of time, and as the economy gives us simultaneous "green shoots" and "dead grass" economic indicators almost every day; a "swing trading" approach to take advantage of the Zigs and Zags caused by the uncertainty of investors, might make us some quick profits.
To emphasize something you mentioned; since this involves a lot of trading, one should only do this in a tax-sheltered account.
You have given me something else to think about in the use of Ultra-Long and Ultra-Short ETFs. Thanks for the idea.
Ray