johnthebear

ProShares ETFs: Why Volume Trading Makes a Difference

John the bear wrote on June 28:

I am amazed that there is a way to get a 2:1 ratio against an index, and I admit to investing without knowing all the facts.

I would appreciate it if you could explain how the process works so that I will have greater confidence in the future as my profit keeps expanding my holdings.

Please try to find an answer for me.

Have you asked ProShares to explain it to you?

ProShares ETFs: Why Volume Trading Makes a Difference

I invest in ultra short FXP (China) and SRS (Dow Jones RE index) and have done very well with both. Trades have executed quickly and I chart each in Yahoo and include the FXI and IYR to compare trends as to which is moving up faster.

I am amazed that there is a way to get a 2:1 ratio against an index, and I admit to investing without knowing all the facts.

I would appreciate it if you could explain how the process works so that I will have greater confidence in the future as my profit keeps expanding my holdings.

I appreciate ProShares and the opportunity they have provided to the small investor.

Ultra and Inverse ETFs: The Downside of Doubling Up

To: William Edwards,

Thank you so much for your comments and analysis. You have really made me think! I don't know where to turn now.

As you said, their is no real descriptive info provided by ProShares. So it looks like a call to Congress may be the only way to address the issue and this might be too late to do anygood. I have a feeling that the regulators will neither respond or give a meaning full answer to this complex question. I am now considering leaving the SRS/FXP ballgame before I am left holding the bag!

Ultra and Inverse ETFs: The Downside of Doubling Up

I use FXP and SRS, but I am sorry to say that I do not understand how they actually make it work?

Who is on the other side of the trade that buys when I sell or sells when I buy? Do they use some sort of a put/call thing? I wish someone would explain this for me. It has been very profitable, but I would be embarassed if I had to explain it to my wife!

How Now, Charles Dow?

ponchovillam,

That was a very good comparison, and so true. I think we are in deep voodoo!

Now it not just a recession" we are in...now they are talking "prolonged recession". What a difference a day makes with the crazy markets these days. UP one day and Down the next, for no real reason. I guess there are a lot of folks with money burning a hole in their pockets and they just don't know what to do? It is my opinion that you should either be short or put your money in a bank with 100,000 government insurance for each deposit. Now is not the time to worry about getting high yields. On the other hand, there is one stock I would recommend. Check out TNH, the only long position I like.

How Now, Charles Dow?

The DJT has a break out above it's 200 day moving average, but I find that inconclusive for the dow theory when matching up with DJI.

Everyone knows the cost of fuel has increased, making trucking very expensive compared with rail, and the index follows the rails. So, how reliable can a theory be that relies on such a distorted indicator? The rails are truly important for measuring industrial activity, but to compare it with current trends does not seem reliable. Please give me your thoughts.