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.

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 ?")