Thursday, September 24, 2009

Short ideas for holding

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.

Marcello

Allan said...

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.

Anonymous said...

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

Mike said...

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

Anonymous said...

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

Anonymous said...

I was waiting for somebody to mention that ol' FAS reverse split...