Trader Jack: lucasjkr: This is what levered ETF's produce in choppy markets like we have. Great if you are good with it, not so great if you hold for a while (speaking from experience).
| Day |
change |
|
1x |
2x L |
2x S |
3x L |
3xS |
| 0 |
0 |
|
$ 100.00 |
$ 100.00 |
$ 100.00 |
$ 100.00 |
$ 100.00 |
| 1 |
10% |
|
$ 110.00 |
$ 120.00 |
$ 80.00 |
$ 130.00 |
$ 70.00 |
| 2 |
-10% |
|
$ 99.00 |
$ 96.00 |
$ 96.00 |
$ 91.00 |
$ 91.00 |
| 3 |
10% |
|
$ 108.90 |
$ 115.20 |
$ 76.80 |
$ 118.30 |
$ 63.70 |
| 4 |
-10% |
|
$ 98.01 |
$ 92.16 |
$ 92.16 |
$ 82.81 |
$ 82.81 |
| 5 |
10% |
|
$ 107.81 |
$ 110.59 |
$ 73.73 |
$ 107.65 |
$ 57.97 |
| 6 |
-10% |
|
$ 97.03 |
$ 88.47 |
$ 88.47 |
$ 75.36 |
$ 75.36 |
| 7 |
10% |
|
$ 106.73 |
$ 106.17 |
$ 70.78 |
$ 97.96 |
$ 52.75 |
| 8 |
-10% |
|
$ 96.06 |
$ 84.93 |
$ 84.93 |
$ 68.57 |
$ 68.57 |
| 9 |
10% |
|
$ 105.67 |
$ 101.92 |
$ 67.95 |
$ 89.15 |
$ 48.00 |
| 10 |
-10% |
|
$ 95.10 |
$ 81.54 |
$ 81.54 |
$ 62.40 |
$ 62.40 |
| 11 |
10% |
|
$ 104.61 |
$ 97.84 |
$ 65.23 |
$ 81.12 |
$ 43.68 |
| 12 |
-10% |
|
$ 94.15 |
$ 78.28 |
$ 78.28 |
$ 56.79 |
$ 56.79 |
| 13 |
10% |
|
$ 103.56 |
$ 93.93 |
$ 62.62 |
$ 73.82 |
$ 39.75 |
| 14 |
-10% |
|
$ 93.21 |
$ 75.14 |
$ 75.14 |
$ 51.68 |
$ 51.68 |
| 15 |
10% |
|
$ 102.53 |
$ 90.17 |
$ 60.12 |
$ 67.18 |
$ 36.17 |
| 16 |
-10% |
|
$ 92.27 |
$ 72.14 |
$ 72.14 |
$ 47.03 |
$ 47.03 |
End result, over any period of these seasaws that we're having, is that your money erodes. SKF and UYG are BOTH negative for the year.
I just shorted SKF today, and will be looking into pairs to add to that (probably DXD and DDM will be added tomorrow).
Timing is everything.
Yes, but if you read investing books, it is nearly impossible to time the market, thus trying to do so will be futile over the long-term.
We are range-bound between 8,500 and 9,000. We think the market may head lower because the rate of change has been 0 as the rate of increase has been logarithmic (not exponential or linear). However, it is possible that it could change direction and creep higher. Fundamentals are more important than technicals; it is just than when we will perceive that we will have more normal fundamentals. This bubble bursting lasted 6-7 years more than we expected (i.e. 9-9.5 years instead of 2.5-3 years).
Aqua