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Dr. Fibonacci has been In the technical analysis arena for 27 years. Goal is to lock in profits without selling off your current portfolio. Dr. Fibonacci - A nickname used in Ameritrade's trading simulation where the Dr. placed in the Top 20 multiple times. The Dr. also took 1st place in an... More
  • No More Market-Tears During Major Equity Market Downslides 0 comments
    Apr 29, 2014 7:15 AM | about stocks: SPXS, SQQQ, TVIX

    With the Double and Triple INVERSE (polar opposite pricing) Exchange Traded Funds, that perform like an option or future without the timeliness and monetary pressures, and the indicators of Dr. Fibonacci, who now thinks there is a long term top in the equity market, we would like to show you how to make a positive return during a market slide of 20% - 55%.

    To illustrate the power of these inverse funds, take a look at the SPXS (Direxion Daily S&P 500 Bear 3x Shares ETF) based on the deeply discounted price of $29.46 and subsequent April levels compared to the 2009 high of $3,000 (conversely, the S&P 500 made a low of 666).

    Entry Price Multiple

    $29.46 April 2014 low 101

    $60 April 2013 50

    $100 April 2012 30

    $175 April 2011 17

    $340 April 2010 8

    Using only 5% of your assets, the SPXS can hedge an entire portfolio or corporate stock holdings and relieve your market crash fears. Keep in mind that typically 85% of most stocks follow the trend of the S&P 500. This numerical example of potential returns is based on past performance of the SPXS, which is not an indication of future results.

    Let's look at how a million dollar portfolio would fare in a market downturn based on a return to 2009's S&P 500 low, having modeled 95% investment in stocks and 5% in the SPXS. If an investor conservatively received only ¼ of the 101 fold potential return from an investment in the SPXS, the 50,000 (5% of 1 Mill) invested in the SPXS would increase in value to 1.2 million (remember; this is a quarter of the potential profit) and the $950,000 would lose $613,993 - dropping in value to $336,006, still netting a positive five hundred eighty-six thousand dollars. Take a look at the other side of the coin of the market goes up another 25%. If the SPXS depreciated to nothing, which is not likely to happen considering it is correlated to the S&P 500 and is not going away any time soon, and the $950,000 appreciates by $237,500, you would still have a positive return of $187,500. Most bragging rights come when you could profit when others are losing money VS making a little less when everyone is making money in an upward trending market.

    How does Dr. Fibonacci fit into all this? The Doctor, who manages a hedge fund, is only investing in 3 INVERSE ETF's that are negatively correlated with the S&P 500: SPXS, SQQQ ( ProShares Ultra ProoShort QQQ), and the TVIX(Velocity Shares Daily 2x VIX Short Term ETN which has 8 times the multiplying effect of the other 2. The Doctor will be reducing or removing exposure, when a significant market rally is expected. The Doctor has proven to be capable of identifying market bottoms as the Doctor did when writing a CFO Magazine article in August of 2011 titled "Proof that Markets are Projectable", of which many top executives from Chase Bank, Wells Fargo, Prudential, Ernst & Young, RBC, and other major investment firms read. The article projected an equity market rally, which came to fruition, when the market was initiating one of the greatest equity rallies in history. The Dr. is writing again to inform investment managers that a significant top has been set in the equity market and it is time to protect your greatly appreciated portfolio since 2009. Smart Money is confirming the doctor's equity market peaking belief, with an interest in the SPXS that is up to 3 times the normal trading volume in the past 6 months than any other 6-month period in history.

    If you profit by following the Doctor's call, all we ask is that you take 80% of the profits and give 10% to an organization to cure disease, and the other 10% to say thank you to the Doctor.

    Best Regards,

    Dr. Fibonacci - A nickname used in Ameritrade's trading simulation where the Dr. placed in the Top 20 multiple times. The Dr. also took 1st place in an E-Trade simulation of which E-trade is still refusing to honor the award of a new Lexus IS300. Fibonacci was a mathematician from the 14TH century of which his findings are still taught in physics and math classrooms today.

    Disclosure: I am long SPXS, SQQQ, TVIX.

    Additional disclosure: I believe the equity market is making a significant top so I am hedging with these funds

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