Wednesday, July 14, 2010

Long DRV/FAZ/SDS

Closed all of my earlier positions (SPY/FAS/DRN) yesterday before the close for a huge profit and went long with the shorties.

Looking good already.

Captain has turned on the seatbelt sign as lot of turbulence is expected in the next 2 weeks. Hold on tight. :-)

GLTA

15 comments:

  1. Also picked up lot of TZA pre-market today. Lets rock.

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  2. I bought SDS yesterday @ 33.16 held overnight.

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  3. would you post again when you close the position on DRV? thanks

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  4. Yes, will do. All of the trades are posted as and when the scenario changes.

    GL

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  5. do you keep trading these ETFs?

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  6. Sorry, i didn't get your question. Please elaborate.

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  7. i mean do you just buy these same ETFs and sell them based on your chart indicators time to time? since i don't see you post your trade for last previous months. Is it good to just follow one of the inversed ETF when market is down, then when oversold and market bounce, just buy the bull ETF (currently i am following DRV).

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  8. Yes, we only buy/sell these specific ETF's. There is NO point in following 1000's of stocks/etfs and backtesting all of them and burning your hand with all of them.

    Instead, just try and consolidate only a few handful of them and trade them both ways.

    ETF's work best only when there is enough volatility. Since volatility was literally dead until about april of this year, we were only working on consolidating our models. We started publishing our analysis only recently even though we have been following our models for a while. Hence, not enough info is there on our site at this time.

    As always, these are NOT recommendations to buy/sell. These are just our opinions and one should take his/her own decisions.

    I started this blog so as to keep tab of my own theories and analysis. If you are exposing yourself in the open, you make sure you do your best job. And hence this blog.

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  9. thank you so much spending time explaining this. So if the volatility back to normal, what would you prefer to trade? What is your opinion on the volatility for the following one month? thank you again

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  10. Jason,

    Dont you think DRV-3x aka SRS-2x is being manipulated too much

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  11. Everything boils down to the moves in the underlying ETFs. With volatility comes a clear identification of the trend. In the absence of which, you get whipsawed. Last year i lost a lot of money because trend was not clearly identifiable and there were too many whipsaws. Again, it all depends on your timeframe of investment. Since i only trade from a few days to a couple weeks at most, it isn't easy to gauge trend without volatility.

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  12. i wouldn't label volatility as manipulation. Yes, there is room for MM's to handle certain equities/etfs in certain ways, but they can only do as much. Eventually, everything is bound to a program. If an ETF is 3X to a base, it cannot really move 6X unless the base itself moves 2X.

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  13. do you sell DRV right away when the market dropped big (thus DRV rised up big)? e.g. last Friday and this moring, DRV is doing good, then now gradually wiped out the profits. So how do you handle this situation? Do you buy more when it dropped and you have closed the postition this morning? thanks

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  14. Just buy when we have a signal and sell accordingly. Rest all is noise.

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  15. DRV is tanking, are you still believe holding? thanks

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