These are Leveraged Inverse ETF's, thus holding them long is a way to short their underlying indexes.
EDZ 90 minute
FXP 90 minute
TZA 90 minute
A
6 comments:
Anonymous
said...
Allan,
Best blog on the net as far as I'm concerned!
Thanks for all the interesting ideas.
I'm doing my best to emulate your rule based approach.
I've read about how 2x & 3x ETF do a good job of tracking price intra-day but become a bit nasty beyond that time period.
Question: Although you often post the 2x/3x ETFs. What do you think of using those vehicles but basing our trades off buy/sell signals from regular ETFs?
e.g. Use XLF as proxy for trading FAS/FAZ.
Just wondering if you or followers have put much thought into this.
6 comments:
Allan,
Best blog on the net as far as I'm concerned!
Thanks for all the interesting ideas.
I'm doing my best to emulate your rule based approach.
I've read about how 2x & 3x ETF do a good job of tracking price intra-day but become a bit nasty beyond that time period.
Question: Although you often post the 2x/3x ETFs. What do you think of using those vehicles but basing our trades off buy/sell signals from regular ETFs?
e.g. Use XLF as proxy for trading FAS/FAZ.
Just wondering if you or followers have put much thought into this.
Marcello
Marcello,
During the rally from March to September, look at how these leveraged ETF's fared:
TNA 10--->50 = +400%
QLD 20--->20 = +150%
FXI 22--->44 = +100%
FAS 12--->94 = +650%
Not bad for "nasty" correlations.
Thanks Allan.
All I'm saying is when I chart the regular ETF and apply ATR etc. I seem to have smoother signals on daily/wkly time frames.
Those listed gains are quite impressive!
I can see why gurus like Jim Cramer want to ban these things :-)
I've been led to believe I shouldn't hold them longer than a day.
I may have to ignore that nonsense next time I get an intermediate signal.
Once again, thanks for the great education.
Marcello
Fidelity Investments, (world's largest fund management organization), is headquarted in Massachusetts.
Same state where it's Attorney General is always attacking these leveraged ETFs.
-Mike
FAS 12--->94 = +650% is wrong
fas had a 4 to 1 reverse split
fas after reverse split became 48
should be 48--->94 = 100%
aymon
I was waiting for somebody to mention that ol' FAS reverse split...
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