ProShares UltraShort Basic Materials (SMN)
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- General Discussion on SMN
- Now is the Time for Inverse Sector ETFs [view article]
- Irrational Arbitrage Spread: Dow Chemical's Acquisition of Rohm & Haas [view article]
- Short Cut to Profits? A Closer Look at Inverse Funds [view article]
- Double Short ProShares ETFs [view article]
- ProShares UltraShort and UltraLong ETFs [view article]
- UltraShort ProShares ETFs: 24 Ways to Benefit From Going Short [view article]
- Obama Plays - Fast Money Recap (8/27/08) [view article]
- Double Short ProShares ETFs: Volatility Goes Both Ways [view article]
- Inverse (Short) Sector ETFs [view article]
- Five Strategies to Survive the Markets [view article]
- ETF Update: Leveraged and Inverse ETFs, Short ETFs, Microcaps [view article]
- Is This Financial Armageddon or the Greatest Buying Opportunity Since 2002? [view article]
loading ...Recent SMN Articles
- Irrational Arbitrage Spread: Dow Chemical's Acquisition of Rohm & Haas
- Friday Outlook: Investors Finally Giving Bad Data Its Due
- Short Cut to Profits? A Closer Look at Inverse Funds
- Thursday Outlook: Awaiting Capitulation
- Obama Plays - Fast Money Recap (8/27/08)
- Double Short ProShares ETFs
- Double Short ProShares ETFs: Volatility Goes Both Ways
- ETFs In Greatest Demand: Financials, Healthcare/Biotech; India's Signs of Life
- Tuesday Outlook: Fed Day
- ETF Update: Leveraged and Inverse ETFs, Short ETFs, Microcaps
- Full List of Articles »
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Now is the Time for Inverse Sector ETFs [view article]
Before I consider trading SKF again, what happened to the holders of SKFs when trading was stopped? Were the shares just held (could not buy or sell), then the price just set when trading resumed (bid/ask)?On Mar 06 03:18 PM Malkiel wrote:
> No, you need a day like today to be able to buy your short positions
> (which you would do if you are convinced that the overall market,
> or at least a chosen sector of it, is not trending up or is moving
> up and down). I like to keep it much simpler though, say by moving
> back and forth between a general market index ETF (like QLD ultralong
> for the Nasdaq) and its short equivalent (QID in this case). you
> buy the short as high as possible into the rally and sell it at the
> next convenient low, where you then simultaneously buy the long to
> ride back up. This is where volatility is your friend and flat or
> straightup trends are deadly. It's also where free trading in a
> tax-deferred account becomes a nice profit machine... Reply
Irrational Arbitrage Spread: Dow Chemical's Acquisition of Rohm & Haas [view article]
insightful is usually spelled like this; ugh! -- Foob ReplyIrrational Arbitrage Spread: Dow Chemical's Acquisition of Rohm & Haas [view article]
Thanks for this analysis -- i found it inciteful. I've been building a position in ROH after "selling" Wrigley due to it's merger.Guess what folks: with these wild gyrations, i think getting into mergers is a safe way to stay involved in the market. I feel that i'm being handed christmas early and have been buying every $3-5 down or so and will build a few thousand share position.
I will keep a close eye on the financiers; never been a fan of Citi but hey, thems the breaks.
Foob Reply
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
anyone know how far out banks do profit projections? calculations on what percentage of people will default? i assume its at least 50 yrs? don't they know what to expect? PS-SRS is doing GREAT ReplyDouble Short ProShares ETFs [view article]
I figured it out myself. DXD issued a 6% dividend. I take back my insinuations that the DXD ETF is less than credible. ReplyProShares UltraShort and UltraLong ETFs [view article]
UYG what am I not getting here? It says it tracks the DJUSFN index, with 2x the return. DJUSFN is up 6.07% today. So UYG should be up 12.14%. However as we speak UYG is up a measly 2.2%. ReplyDouble Short ProShares ETFs [view article]
Does anyone know why the ProShares DXD UltraShort ETF dropped 6.14% overnight from Sep 23rd to Sep 24th? The Dow Jones Industrial Average only moved up 0.20%, so the the DXD should have only dropped about 0.40% (twice the inverse). I could understand if the DXD occasionally lost a half of a percent with respect to its base index, but 6% in one night ????? Did ProShares take 6 years worth of fees that night? It certainly reduces the feasibility of achieving any gains from this ETF. ReplyDivergence
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
Thanks. Great answer, and I agree with you. ReplyShort Cut to Profits? A Closer Look at Inverse Funds [view article]
Dr. Divergence:This is uncharted territory. Closest example may be the INP exhange traded note from Barclays that stopped issuing creation units when India temporarily stopped certain foreign investments. That went way out of wack.
In this case the instruments used to fund the inverse fund are most likely of definite term, except for their actual stock shorts. The derivatives will expire and the fund will become less short. Until the next report, we won't know how many if any actual stock shorts they have.
Absent actual stock shorts the fund assets will be in run-off and would eventually be all cash or government debt instruments. In a rational world, the price would approach the NAV in that case.
The expectations for future actions by Congress would probably be key, but I have no idea what those actions would be or how the market would respond.
Today when the bailout vote failed the SPY was off nearly 7%.
SKF is up 18+% as of the moment with nearly 16 million volume. XLF is down 11+% with 52 million volume, so the 2x leverage is approximately working for the moment. Reply
Divergence
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
Point taken, Richard. Good article. Do you have any views about the tracking error issue in SKF et al now that they are unable to issue new creation units due to the short ban? ReplyShort Cut to Profits? A Closer Look at Inverse Funds [view article]
Dr DivergenceI said it "exposes" short investor to interest. That is meant to convey that interest "could" be a factor if the trade goes against the investor to create a margin call.
The point is correct about the "potential" for interest cost, which is not a potential cost with a non-margined long position in an inverse fund. Reply
Divergence
Short Cut to Profits? A Closer Look at Inverse Funds [view article]
Your point #6 is factually incorrect. No interest is paid on a short sale. The sale takes place in a margin account and the short SALE generates a free credit in the account. Generally the broker will credit the short selling customer with somewhere from 50% to 70% of the interest earned on the free credit, subject to negotiation based on account size, trading frequency etc. Replyate
Double Short ProShares ETFs [view article]
The double inverse track the double inverse of the DAILY price movements of the inverse. In the case of SRS it tracks the double inverse movement of IYR (The Dow Jones US Real Estate Index). The important thing to remember is that the fund is born and dies every day and does not correspond to price points with IYR. I.e. if one day IYR was at 100 and SRS at 200 then another day when IYR approaches 100 SRS could be at $150. The fact that a % down has more of a negative effect than a % up, SRS will tend to trade downward over time. Accepting this fact then you find that the leverage on this ETF actually works AGAINST you over time and should therefore be avoided unless you think there will be a sustained downward trend in IYR.On Sep 19 02:38 PM mamie wrote:
> if you find out anything please let mo no
>
>
> On Aug 24 10:14 PM johnthebear wrote:
>
> > CAN ANYONE EXPLAIN HOW THE DOUBLE SHORT ETF BY PROSHARES WORKS?
> IS
> > IT SAFE? I OWN FXP AND SRS, BUT IT KIND OF SCARES ME.
> > Reply
Distance
Runner
UltraShort ProShares ETFs: 24 Ways to Benefit From Going Short [view article]
OK, I admit, I'm no sophisticated investor, but I want to risk some capital in reverse ETFs. Can someone tell me how to just invest $5,000 (or so)? Is there a minimum? A maximum? Any suggestions, would be appreciated. Can I do these on line? Do I need a broker? Reply in strictest confidence to tomcares@verizon.net. I would also do "put options" as another attempt to make some money in this crazy market. Otherwise, I guess it's just gold coins and bars! I am NOT confident about the direction of our financial markets, obviously. ReplyDouble Short ProShares ETFs [view article]
if you find out anything please let mo noOn Aug 24 10:14 PM johnthebear wrote:
> CAN ANYONE EXPLAIN HOW THE DOUBLE SHORT ETF BY PROSHARES WORKS? IS
> IT SAFE? I OWN FXP AND SRS, BUT IT KIND OF SCARES ME.
>
> PLEASE HELP ME OUT HERE. Reply