The week's ETF movers - Gainers / Losers

The week's ETF movers - Gainers: TAN +8.03%. VXX +2.60%. TLT +1.56%. DBA +1.27%. FXY +1.09%.

ETF Losers: UNG -4.59%. EPI -4.00%. GAZ -3.34%. DEM -3.32%. KOL -3.13%.

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Comments (1)
  • jmack2
    , contributor
    Comments (38) | Send Message
    It would seem that if the TVIX and VXX move on the negative correlation with the market and as premium on the near dated options moves in relationship to anticipated volatility that one would always be better putting one-third the money into the 3x leveraged TVIX in times of major uncertainty and possible identifiable periods of high volatility as opposed to buying the VXX. Since any long term purchase of either product will eventually prove to be a losing position because of rising costs on futures, then it would seem that these products should only be bought for the 1-2 months ahead in which a major correction could reasonably be anticipated. Since we are facing what may be disappointing earnings for the 3rd quarter and downward revisions for the 4th, and since the deficit and debt ceiling stalemate seems likely to cause a short term gov't shutdown that this is the ideal time to put some money into TVIX. The purchase of the VXX and sale of covered calls does not seem worth the risk and limited premium available with the corresponding loss of protection for all but a minor correction. Are there products available to play for a correction which are not totally dependent on futures contracts being repurchased to render the investment a guaranteed loser if held for more than 30-90 days max.? Do any of these products give you 3x leverage to allow for more protection at a substantially lesser cost more analogous to buying term insurance rather than whole life or cash value policies of life insurance? Why do people willingly insure their lives, their homes, their cars, disability coverage, and buy umbrella coverage as a major protective hedge and then fail to insure what may be their biggest asset which is their total portfolio both individually owned and owned within a retirement account. What is available at the least cost to protect against more than a 5% correction or a 10% decline while still not trying to time the market with ins and outs especially in taxable accounts? We know interest rates will work materially higher over time but before then we may see a 10 yr. return to 2.2% on continued weaker news and further reductions in FED growth estimates and grossly understated inflation rates. Products like TBT should be in any one's port. if holding longer dated bonds but is there a better way to accomplish this protection?
    28 Sep 2013, 01:00 PM Reply Like
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