dfx

Leveraged ETFs Might Be the Cause of Late Day Trading Moves

correct. they buy (AKAIK) warrants and then ... some other firms have to go and execute the actual trades. I don't understand when or if stocks get transferred to ownership by the ETF. so its like a time-blur effect : we can say that the ETFs don't buy/sell the market, but they do so indirectly. heavy buying forces heavy buying thru the executing parties.

and that is part of the confusion of modern day casinos ... erm...sorry...finance.

I'm trying to figure out in greater depth how these ETFs actually execute and nobody ever answers me. because they don't know.

this is really important and we need to get to the bottom of it.





On Dec 16 02:29 PM Hodarius wrote:

> Leveraged ETFs don't buy or sell any actual stocks, and therefore
> don't affect stock prices. Leveraged ETFs buy and sell derivatives
> (options, swaps) that are *tied* to stock prices, and therefore will
> affect prices of options - but not the stocks that the options are
> tied to.

Chinese Stock Market Bottoms: What Should U.S. Investors Do?

long OMG short US

disclosure : position in WTF

let's all remember that last year china had many stock market shocks simply when the government said things like "stock market too over heated, we need to bring it down to earth a bit" and by curbing the mainland middle classes ability to gamble with their savings in the hong kong market.

yes, 10% is too hot and its not a bad thing to have corrected. a bit more than they wished I'm sure.

Tracking Trouble for the Triple-Levered ETFs

yes, but people don't buy these to track the index per se, they trade them to gamble. the only real reason to wish it tracks the index precisely is if you want to use the index to tell you what might be about to happen.
I'm more concerned with the spastic bid/ask jumping beans.

Bond Bubble Coming to an End? Prepare for the Bust

don't be fooled by charts. this is the age of crazy VIX and herds of angry black swans. QE simplified = the fed is buying its own debt.

What the TICK Is Telling Us Today

intuitively the TICK doesn't seem like it would be a good indicator. many of the market participants don't seem like they would be paying attention chasing the bid so closely. many of them are robots.

but in practice it really changed my trading (hat tip to dr. brett !). it captures how impatient traders are to get in or get out. combined with the VIX of VXN, I get a fairly good reading to interpret short term price moves.

re: the time zones / futures. its as though the US markets always have to put some spin on what has played out overseas. by the time it hits the US markets its old news ("we're all going to die") and everybody shifts to the next chapter ("how much are corpses going for ? is graveyard real estate hot or not or is it trashed like the rest of housing and commercial RE ?")