the bleeding continues...
Followers
Monday, March 9, 2009
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2009
(543)
-
▼
March
(109)
- SPX Falling Wedge Still Holding
- George Soros: The Recession Could Last FOR EVER!
- Possible Falling Wedge Here
- FAZ Setting Up A Reversal
- THE MOST CLASSY THING I HAVE EVER SEEN
- The Art Of Trading Stocks/Index Alerts Service
- Stock Setups
- Roubini Says Stocks Will Drop as Banks Go ‘Belly Up’
- HERE IT IS! FINALLY! 10 DAY FREE TRIAL
- Updates/Breakouts/Breakdowns/Setups
- Trader Thoughts
- Nervous Bulls + Eager Bears
- LONG 4000 FEED at 2.10
- SHORT 400 OIH at 83.27
- LONG 500 DXD at 65.23
- Getting Ready For My Second Trader Interview With ...
- Futures Screaming Higher As Of Now
- Important Week
- Two Setups To Watch
- Medium Term Sell Signal On Indexes
- NR7/Inside Day
- SOLD FAZ 32. 83
- LONG 250 FAZ at 33.4
- 60 MIn Bull Flag on SPX
- The Art Of Trading Stocks/Index Email Alerts Service
- Seeing It Again
- Market Update
- The Art Of Trading Mentorship Program Update
- The Art Of Trading Stocks/Index Alerts Service
- Citi CandleStick
- The Art Of Trading Mentorship Program Update
- SOLD FAZ at 28.63
- LONG FAZ : Hollow candle
- MAjor Short Squeeze
- The Art Of Trading Mentorship Program
- Strong BUYS
- We Could Be Approaching A Major Top Very Soon
- Trading On FED Day..
- Market RALLY Facts
- BINGO! I SEE GREEN!
- Keep FAZ On The Watchlist
- A Market That Refuses To Drop Will ONLY Do One Oth...
- Rock The Vote!
- Don't be Too Eager To Short Here
- My FIRST Trade
- Scanning Thru Several Charts: One Major Problem Fo...
- Anxiety
- Got Lots To Do
- No Edge Here: We Could Be Setting Up A Flag
- OUT FAZ 43.17
- Looking Thru Many Other Blogs
- Nice Reversal At The Close On FAZ
- LONG FAZ: Swing Trade: 300 shrs at 36.48
- Out BAC 6.44
- Long BAC
- On Days Like Today
- BGZ Swing Trade
- Out FAZ: Small LOSS at 37.17
- FAZ: Hollow Candle Number Two
- Pre Market Futures Gapping Higher
- Your Tax Money At Work!!
- Scanning Thru Several Dozen Charts Tonight
- The More I Watch My Previous Post's Charts..
- DOJIs
- Stopped Out Of FAZ For a $2.98 Gain.
- Volume In FAZ Is Very Strong
- FAZ re-entering at 40.11
- Taking A Small $1 Loss on FAZ and Sitting Out For Now
- FAZ: Hollow Candle
- YOU MUST WATCH THIS VIDEO: Very Sobering Moment Fo...
- For Those Interested In PRIVATE COACHING
- FAZ Crashing To Strong Support Levels
- It's Crunch Time
- Pre Market Update
- The STOCK PICKING SERVICE I Want To Offer You PART...
- I Am NOT Impressed By Today's Candles
- How Can I Help?
- DOJI like Patterns On FAZ and SKF
- FAZ and SKF At Supports
- People Are Giddy Yet Stocks Are At Resistance Now
- GREAT ARTICLE ABOUT INTERVIEWING TIPS
- For The REAL Pizza Lovers: Pizza Napoletana
- An Example Of Why Inverse ETFs are Trading Vehicle...
- For What Its Worth
- One Hour To Go Before The Close
- ABX Bear Flag Update
- Citi Is Porfitable?? Who Knew??
- Learn From Your Mistakes By Alan Farley
- You Packin HEAT?
- Zero Reasons To Be Long
- CandleSticks Pointing To More Bleeding...
- SUCKER RALLY!!!
- Where's the FEAR?? Part 2: Charts and Analysis By ...
- Where's the FEAR?? Part 1: Charts and Analysis By ...
- ABX Setting Up A Bear Flag
- What Happened To The PPT??
- WOWZERS!!
- FAZ Breakout
- Jon Stuart's Daily Show Tears CNBC a New One!
- Preparing For Meltdown
-
▼
March
(109)
Cool Traders/Sites
- ART OF TRADING Premium Site
- Charting Trends blog
- Denarii
- Finance Trends bog
- It's Gold
- Keep Unread Blog
- LaserTrader
- momentum trader
- My Trader Interview
- Mystic Stocks
- NYC Trader
- Rant About It Blog
- stock rook goes pro
- Stock Virtual
- StockPursuit.com
- The Market Guardian
- thecrosshairstrader
- Todds Trade
- trader market blog
- Trader9999 blog
- Trading Momentum blog
- Trading With Average Jay
- Wall Street Warrior
9 comments:
Stewie, I've been playing with retirement money that I can't touch for 20 years, so it's been hard to truly think short-term. I bought IVV at 75 and kept believing it would turn around. I finally 'capitulated' today and traded it for SDS. Thanks!
Are you holding overnight?
Yowsa, how's that for a contrarian indicator? :)
Hope you've read the prospectus for SDS and are aware it only tracks the daily performance of the SPY. SPY is significantly below its November low, but SDS actually closed below its November high today.
lol: i think short term we are headed lower.
i had abx short from friday but covered it for a 1 pt gain this morning. i added to FAZ on today's drop. \\
talcumbiy; PLEASE ELABORATE on what you said about SDS. THNX bro.
"ProShares UltraShort S&P500 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P500® Index"
What this comes down to is that while it is a good short-term way to trade opposite to the market, it's longer term performance does not necessarily reflect twice the inverse performance of the S&P 500.
Also (and I'm not 100% clear on how this works), in times of increased volatility the longer term correlation seems to deteriorate even more. For an example check out SRS vs IYR (ultra inverse and standard real-estate etfs). The peak of SRS was in November at 273 (while IYR had a low of 22.92). Though IYR is again under 23 dollars SRS is only at around 100!
Maybe someone else can explain why the ultra ETFs seem to experience significant NAV (Net Asset Value) loss in periods of higher volatility - I know I've read something about it before, but can't seem to find it.
So, I'd be cautious holding any of the inverse ETF for longer than a couple weeks, especially given how far and fast we have fallen in the last month or two.
PS. As an item of interest I've read of some people shorting the ultra inverse etfs as a way of capturing some of this NAV loss as well as upward movement in the market. Something to think about.
thnx talc. i rarely hold inverse etfs for more than 2 days.
Thanks for the concern, guys, but I'm trying to play more short-term...like days.
As for the Ultra ETFs, I'll try to explain it as simply as possible...I tend to get wordy. If the S&P goes up 1%, the Ultra ETF will go up 2% (theoretically). If the S&P then drops 2%, the ETF will drop 4%.
So, $1 in SPY goes from 1 to 1.1, then to 1.078. That same $1 in IVV will go from 1 to 1.2, then to 1.152. Sure, you're still up more in the Ultra, but you've lost .048 in the Ultra compared to .022 in the strait ETF.
---oops, didn't get to finish that last comment.
I was going to say that added volatility will add up those losses, and you could end up worse off. So, yeah, double and triple ETFs are ONLY FOR SHORT TERM.
It's not rocket science, but one could still get burned.
Hey Talcumboy, as soon as I pulled the trigger on that trade, I got sick to my stomach to see if that would be the exact moment of a serious rally. Been lucky so far...
Here's a pretty good explanation http://www.minyanville.com/articles/SRS-IYR-etf/index/a/21516/from/yahoo
cliff: sorry about that SDS trade. looks it was a capitulation trade to reverse it. happens to everyone from time to time. gotta be quick to realize the mistake and switch to the right side.
Post a Comment