Posts tagged Long

Why Shorting SDS is in my opininion the greatest long term strategy for the average investor

IF you look at the chart located HERE, you will see that over time, SDS does worse than its non leveraged counterpart SH.

This is caused by the Constant Leverage Trap, a problem with double leverage that causes below 200% returns.

The solution to the issue, and the way to achieve an over 200% return, In periods of volitility.

If you short this, or any of the leveraged ETF funds listed below, you may be able to better use ETF’S to maximize your profit

Short & UltraShort MarketCap ETFs:

ETF Name Ticker Benchmark Index
Short QQQ PSQ Nasdaq-100
Short Dow 30 DOG DJIA
Short S&P 500 SH S&P 500
Short MidCap400 MYY S&P MidCap 400
Short SmallCap600 SBB S&P SmallCap 600
Short Russell2000 RWM Russell 2000
UltraShort QQQ QID Nasdaq-100
UltraShort Dow 30 DXD DJIA
UltraShort S&P 500 SDS S&P 500
UltraShort MidCap400 MZZ S&P MidCap 400
UltraShort SmallCap600 SDD S&P SmallCap 600
UltraShort Russell2000 TWM Russell 2000

UltraShort Style:

ETF Name Ticker Benchmark Index
UltraShort Russell1000 Value SJF Russell 1000 Value
UltraShort Russell1000 Growth SFK Russell 1000 Growth
UltraShort Russell MidCap Value SJL Russell MidCap Value
UltraShort Russell MidCap Growth SDK Russell MidCap Growth
UltraShort Russell2000 Value SJH Russell 2000 Value
UltraShort Russell2000 Growth SKK Russell 2000 Growth

UltraShort Sector:

ETF Name Ticker Benchmark Index
UltraShort Basic Materials SMN Dow Jones U.S. Basic Materials
UltraShort Consumer Goods SZK Dow Jones U.S. Consumer Goods
UltraShort Consumer Services SCC Dow Jones U.S. Consumer Services
UltraShort Financials SKF Dow Jones U.S. Financials
UltraShort Health Care RXD Dow Jones U.S. Health Care
UltraShort Industrials SIJ Dow Jones U.S. Industrials
UltraShort Real Estate SRS Dow Jones U.S. Real Estate
UltraShort Semiconductors SSG Dow Jones U.S. Semiconductors
UltraShort Oil & Gas  DUG Dow Jones U.S. Oil & Gas
UltraShort Technology REW Dow Jones U.S. Technology
UltraShort Utilities SDP Dow Jones U.S. Utilities

Short & UltraShort International:

ETF Name Ticker Benchmark Index
Short MSCI Emerging Markets EUM MSCI Emerging Markets Index
Short MSCI EAFE EFZ MSCI EAFE Index
UltraShort MSCI EAFE EFU MSCI EAFE Index
UltraShort MSCI Emerging Markets EEV MSCI Emerging Markets index
UltraShort MSCI Japan EWV MSCI Japan Index
UltraShort FTSE/Xinhua China 25 FXP FTSE/Xinhua China 25 Index

 

Now I included the regular short ETFs because I wanted to make a point. **The following Idea is a derivative of  something I am trying to start a fund based upon** You can go 100% pro the s&p, dow, nasdaq.. etc. and get a better than 100% return against the index. Now some will argue that the Double Leverage trap dosent exist but I believe that it is an effective way to game this market. 

My reccomendation for this week is to wait until tuesday to go long. I will Post another brief on monday night.

Take the 50% gain,or why i would be long UltraShort MSCI Emerging Mrkts ProShares (EEV)

So, id like to thank all of my readers for their responses, I appreciate the emails. (use the contact me link above)

 

That being said, I stand by my claim, you SHOULD NOT BE SHORT THIS STOCK ANYMORE!

I am on full confidence saying that you should be going long this stock at the first oppourtunity.

I think we have peaked.

I think we are due for a nice turnaround. As such i have a small portfolio for you to use with your new gains

LONG    Short 

EEV       UYG

SDS       SSO (Yes i realize sds is right next to this, this is to negate the constant leverage trap)

DUG

 

 

The Long and Short of it: The 10 x Oil = Gold trade.

In recent days, my trade has been:

If Golds results is not 10x oils results, you may want to play the equlization (on a percentage basis for the year). This is based on my opinion that it is more along the lines of a currency devaluation based selloff, with alittle bit of margin calls added in there for good measure. I personally think that eventually, this will all lead to an actualization of 10 x Oil’s price = Golds price As such, i think an appropriate valuation of oil would be 82.14 in this economy as of writing this. As such, I am long the airlines till 2:30, when the market does this whole, im scared about Russia killing Georgia thing.