Posts tagged my
Why Shorting SDS is in my opininion the greatest long term strategy for the average investor
Nov 8th
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.
Why if you listened to my position on UltraShort MSCI Emerging Mrkts ProShares (EEV) You Made 40%+ today
Oct 28th
If you did win with this trade today, my humble advice to you is to take the trade.
You got a 40% gain off my advice today, I fully expect a sell off day by close of thursday, as such, I am reversing my position on this stock.
I hate Charlie Gasporino(sic), or why my worst trade ever turned into somewhere around my 2nd best day
Sep 16th
Let me start of this blog post by saying that I love it when companies survive the night but are tremendously trashed, as you can usually tell the direction of the stock within 5 minutes and they tend to be good for MAKE-YOUR-YEAR returns.
This should have been one of those stories for me today.
I had been trying to pick up 1k shares for 2.5 for a while this morning after getting rid of a bad O/N airline short that i had to keep due to the worst rule in the world, the Pattern-day-trader rule.
So I cover my lcc and take to trying to by 1k shares of lcc (I was only really 5-10 cents off) and guess what happens, Charlie Gaspoino (I am relatively sure.) Says, (AND IM PARAPHRASING) ” Yeah, I know some guys, and they are high up in the fed, and they talking bout extending AIG teh bridge loan”
Of course im trying to buy, each time, the stocks already shot up by the time i place my order, SO eventually I manage to put in a market order, I buy at 4.01
Click on the chart to enlarge the chart part of the story.
Long and short is, Sometimes, the best move is to do nothing in times you really shouldnt be in there.
My advice for tommrow, if the company is still alive, and goes below $1.00 It might be a good time to buy.
Even with an 80% share dilution off of a recent pre-fnm panic, (20*.2) you would still value the stock at $4.
In addition to this, the company’s health is no longer in jeopardy. And there are buyers out there expressing interest.
My case for temporary rising oil
Aug 31st
So, lets ignore the fact that there is an incoming cat 4-5 hurricane.
We just used at least 5 million gallons of fuel evacuating (i thought 4 gallons per person leaving N’Orleans would be too little but hey, youd criticize me if i said more), we also have the increase in airfuel usage, transport costs, levy-generator running.
In addition to this, the platforms have shut off 1.5 million barrels a day in production, for about a week, that adds up to 10.5 gallons, so we have a minimum loss before the storm (regardless of storm damage to platforms-refineries) of 15.5 million barrels of oil.
Googleplexed? Heres my opinion on Google Inc. (GOOG)
May 28th
Quicktake
- AN AU Google (GOOG)(an AU is the distance between the earth and the sun, inotherwords, really long.)
Google, the everlasting giant of the series of tubes we all know as the internets, is at what i consider to be a great buying price. Google will experience a dominance of search technology similar to the dominance of tissues that the kleenex corporation did, and this is only because of the fact that everyone no longer searches for anything but rather googles it. Google managed to be able to create a corporate enviorment that is the best in the world. These productive and happy employees have come out with gems that everyone knows about in their SPARE TIME, such as GMail.
Google however has a few things you might not be taking into your considerations when calculating how they get their earnings.
- Google makes loads of money off of MOZILLA, this is because of the embedded search bars you see on the top right of your browser. One analysts projection is that between that search bar and the toolbars, google makes at least a BILLION dollars. Important to note of the value of this is that google will pay people 1$ for any bar their site refers onto someones browser. The importance of this is that Mozilla is coming out with Firefox Release Candidate 2 for firefox 3.0 (Which this is being written on)(this means more users gleamed from IE when it is released and more profit for google.
- The 3G IPHONE, for the same reason as Mozilla, google makes loads of money everytime someone uses google, which is preset onto these iphones, to click on one of their paid links (which belive me get used with iphones)(I <3 my Iphone, which is paid for when you click on adds, so thanks)
- The android, not to be confused with [[Iron Man]], Is an open phone (can be used with any carrier that signs up) Loaded with the absolute best nerds could come out with, this phone is going to smack the Blackberry Bold and the 3G iphone into the ground, im talking deathmatch style, it will hurt Apple Inc.(AAPL) and Research in Motion (RIMM) (RIMM More, check this article out)
- Jerry Yang, need i say more, is going to be the best thing to happen to google since USB 2.0 (they need flashdrives) he manages to increase googles profits when he lets them serve some of the adds, further driving people to just go with google alone because, hey, it’ll end up on yahoo anyway.
Overall, i have a 12 month price target of $750 with this stock. Have at it, and look me up on google.
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