IBDMAN15

3 Comments

    • Getting to Know Long and Short ETFs [view article]
      Sorry, it was SDD. Double short on the S & P 600. Apr 21 07:34 PM
    • Getting to Know Long and Short ETFs [view article]
      I meant SDS on the $85 sell. Apr 21 07:33 PM
    • Getting to Know Long and Short ETFs [view article]
      These ProShare funds are awesome. I went from 100% equities to all cash on October 12 then started buying SDD, SDS, QID, MZZ in late October/early Nov with half the cash, was up big thru Thanksgiving, cheering as the market declined because I was making money....then saw my gains evaporate as market experienced a follow thru rally in early December and I held (broke the rules) but then the market tanked in early January and I sold all the short ETF's around the 15 th of January just before the Jan panic low. Got kicked out of SDD at $85 on a real volatile day. The day after the Jan panic, I went long in, albeit too early, in QLD, SSO, UWM and MVV. Up nice now with total portfolio up 16% since Jan 1 and 20% since going to cash Oct 12. These leveraged ETF's are very good funds for someone who watches the market everyday and understands accumulation days and distribution days on the major indexes. I have been studying O'Neils books for 15 years and read "The Big Picture" in IBD everyday....and broke the rules by staying short, especially after the confirmation rally in early december and the failed rally attempts this winter. Overall these long/short ETF's are great but you have to know when to sell and not worry about Capital Gain taxes. Best for non-taxable accounts like 401 k's and IRA's. No reason to have individual company risk anymore cause bad news can destroy even the best of the best...look at ISGR that dropped $60 in one day last week on a profit miss. Could have double this performance had I been smart enough to stay in the short ETF's until the panic selling kicked in then went long on those crazy days. I had never shorted the market before and this is a real easy way to do it...plus you can't sell short in a retirement account but can buy short ETF's because these are technically "long" positions. Apr 21 07:26 PM
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