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IHateFraud

IHateFraud
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  • MARKET TIMINING UPDATE MARCH 19TH  [View instapost]
    Tim, the VIX is up more than 5% and TVIX has cratered - down more than 16% right now. I don't understand this. TVIX has dropped more than 2 points in less than 2 hours in a down market day. I feel like I've been scammed beyond belief. Can you explain this? Thanks...
    Mar 22, 2012. 01:06 PM | Likes Like |Link to Comment
  • Is Meredith Whitney's Goldman Sachs Downgrade Heresy? [View article]
    Goldman has already started shorting Bank Stocks, based on the recent "upgrade" for the sector. Upgrades always mean "sell", except for Retail, who see it as an opportunity to rush in and buy at the top.

    Whitney's about to get another feather in her cap for calling the END of the Financials Rally. She's just doing what she's been told to do (again) and getting Fame & Fortune in the process...Isn't that the American Dream (now sponsored by your friends at the United States of Goldman Sachs)???
    Oct 13, 2009. 02:12 PM | 1 Like Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    Freakin UNBELIEVABLE! If anything, this should prove to any doubters exactly WHY these things have to be removed from the reach of normal traders/investors...It's a case study!


    <<RIFIN and FAS/FAZ follow different companies. Not all financial companies are in both indices.>>

    WTH?!?! Do you even know WHAT you're buying when you buy FAZ or FAS?

    <<As I stated in my previous posts, I recommend not holding them for more than a week. Decay is a fundamental mathematical feature of these ETFs, and the longer you hold them, the more you'll experience volatility-induced decay.>>

    Dude, what Kool-Aid have you been drinking? "Decay is a fundamental mathematical feature of these ETFs...Volatility-induced decay"??? Are you for real or are you being funny here?

    Do you know WHY there is decay in FAZ and FAS? Here's a HINT: It has nothing to do with volatility and it is NOT a fundamental mathematical feature of these vehicles. At any given time of any given day, DIREXION SETS THE PRICE of FAZ and FAS. Now this is extreme, but I'm making a point: If 10 million traders decide to BUY FAZ within 10 minutes of the open tomorrow and 10 million traders decide to SELL FAS within 10 minutes of the open tomorrow, guess what that does to the prices of FAZ and FAS...Absolutely NOTHING!

    DIREXION sets the price of these scam vehicles EVERY SECOND of EVERY DAY...Not volatility. If DIREXION says you get a +2.45X price move today (instead of +3X) when you were correct on trend, then that's what you get! If DIREXION says you get punished with a -3.45X price move today (instead of -3X) when you were wrong on trend, then that's what you get..."Volatility-induced decay"...LOL

    Do you see YET how these are flat-out SCAMS? The guys at DIREXION must read this stuff and laugh so hard they crap their pants! They could print this in BIG BOLD LETTERS on the front of their Prospecti: WARNING! DO NOT BUY THIS SECURITY OR WE WILL TAKE YOUR MONEY FROM YOU. THE LONGER YOU HOLD IT, THE MORE WE'RE GOING TO TAKE! BUT EVEN HOLD IT ONE DAY AND YOU WON'T RECEIVE THE 3X TARGET OBJECTIVE! AGAIN...DO NOT BUY THIS SECURITY!

    If they did, sales of FAZ and FAS would TRIPLE overnight!

    And you don't have to wait for "a week" to lose with these. I just showed you that if you owned FAZ before today, you should've received a +3X RIFIN % move today...But DIREXION gave everyone +2.45X RIFIN % (.81/.33 = 2.45X). If you bought FAS before today, you should've received a -3X RIFIN % move today...But DIREXION gave everyone (-1.14/.33 = -3.45X).

    Since DIREXION SETS THE PRICE, do you see YET why FAZ and FAS are price manipulated and complete RIP-OFFS? Don't you deserve a DAILY CLOSING PRICE that gives you +3X when you're right and only takes away -3X when you're wrong? That's what the PROSPECTI say they're TRYING to give you. Doesn't it concern you that you didn't get that today WHEN THEY CONTROL THE CLOSING PRICE??!?!?! Doesn't that SCREAM SSSCCCAAAMMM at you???

    When you receive LESS than +3X every time you're right and get hammered with MORE than -3X every time you're wrong...THAT IS THE DECAY, and it adds up over time like a Freakin Black Hole slowly swallowing up BOTH SIDES simultaneously -- Bulls & Bears alike! It's like a LICENSE TO STEAL because THEY SET THE PRICES of FAZ and FAS!

    <<I consistently make money using leveraged ETFs. Not always, but overall, they've been fantastically successful for me. It's a winning game for me, and if you don't understand the rules, then don't call it a "losing game" just because you lose.>>

    <<So I am only trading leveraged ETFs when their upside is MUCH larger than their downside. Because of the way I use the indicators, they would not typically decline nearly as much when I lose as they would rise when my system makes the right call, because my system is heavily biased away from times when the ETFs have serious downside risks.>>

    Sorry, but I don't believe you. Nothing personal...But if you've lost $100k in ONE DAY on leveraged ETFs, then it's hard for me to see how you can recoup that when you are "in FAZ" 30% of the time and "in FAS" 30% when FAZ is DOWN 88% Y-T-D and FAS is DOWN 63% Y-T-D...Now if you'd said you SELL THEM SHORT 30% of the time each, you'd be sippin Mai-Tais on the beaches of Bora Bora by now...

    It sounds like you have good OBJECTIVES for designing a system...But your FATAL FLAW is in desigining the system to trade FAZ and FAS. They are DERIVATIVES, as in they obtain their value from something else. So "trends" in FAZ and FAS have an inherent error in them -- you call it volatility-induced decay. Now if you base your system and indicators on RIFIN or XLF, you'll be much better off.

    If you have indeed managed to hit a hot streak and get your losses back on FAZ and FAS, then congratulations! You've beat the odds...Now have enough sense to get up and RUN AWAY and leave this FIXED CASINO before you lose it all back plus your plane ticket home...I promise you: they'll take all of your money if you don't!
    Jul 28, 2009. 09:53 PM | 3 Likes Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    The PROBLEM is people expect a fair playing field when they buy a stock or ETF...While it's debateable whether a particular stock is manipulated or not, FAZ and FAS are CLEARLY MANIPLUATED on a daily basis...And despite traders/investors seeing this for themselves, they STILL throw huge amounts of cash and retirement funds at FAZ and FAS every day, not even suspecting (or wanting to believe) that it's a RIGGED GAME!!!!!!!

    Pick a day...ANY day and compare RIFIN's performance to FAZ and FAS and you don't even have to look at a YEAR's performance to conclude that they are RIGGED! It reminds me of the old radio game on the morning show called, "YOU CAN'T WIN!" After years and dozens of people calling up and LOSING, they still called! Even though they always asked each player, "OK...Are you ready to play YOU CAN'T WIN?!" They always said, "Yes!" (As a side note, I think they finally did let someone win)...

    Take today. According to Yahoo Finance, RIFIN was DOWN 0.33%

    So if you have to hold for "an entire year" to lose with FAZ and FAS, then FAZ would've been UP 0.99% today and FAS would've been DOWN 0.99%...Problem is:

    FAZ was only UP 0.81% today and FAS was DOWN 1.14%...Now for those who say, "Yeah, but it's just so difficult if not downright impossible to be up and down EXACTLY 3X on any given day..." I say, "Funny how, no matter which one you BUY, you always GET less than 3X when you're right on trend and you get socked with a hit of MORE than 3X when you're wrong."

    Now I can show example after example after example of these types of inequities on a Daily, Weekly, Monthly or Annual basis -- Yet STILL there are those who not only FLOCK to these "When Direxion wins, Direxion gets MORE...When I win, I get LESS" absolute obvious SCAMS...But they CRY, "Please don't take these away from me because I know how to use them correctly." It would be LOL if it were not completely pathetic.

    Understand this: Stocks are supposed to go up and down based on "buying and selling pressure"...That's what we've all been taught. There is absolutely NO REASON that FAZ and FAS can't produce prices that move EXACTLY +3X and -3X every single day...But that would mean Direxion would have to assume some of the RISK of these instruments that is currently 100% shouldered by the BUYERS of these "ETF"s. The actual buying and selling of FAZ and FAS have NO EFFECT on their pricing. And therein lies the SCAM...Read this paragraph again if you still don't "get it"...

    IF, and I emphasize IF, FAZ and FAS did move +3X and -3X daily in relation to RIFIN (and AS ADVERTISED), then I would have no problem at all with them. But when you're right and you get less than +3X and when you're wrong you get taken for more than -3X...Then you are PLAYING A LOSING GAME no matter what time frame you convince yourself you are good enough to win at.

    FAZ and FAS will rarely (IF EVER) exactly produce DAILY price moves that correspond to the advertised +3X and -3X performances that are easy enough to produce -- Just set the CLOSING PRICES equal to a +3X and -3X move of RIFIN...(This is possible because Bid & Ask or even Size doesn't move the price in these vehicles.) This FAILURE TO ACHIEVE is a direct contradiction to the stated objective of the "ETF", and IMHO proves an INTENT TO DECEIVE.

    But if Direxion were ever FORCED to do this and truly level the playing field and deliver on their +3X and -3X "promise", they would shut FAZ and FAS down the very next day because they would be back to settling for the spread for profit...As it is now, they MAKE HUGE PROFITS EVERY SINGLE DAY and every single time someone buys one of these scams because they are plain and simple vehicles of MANIPULATION designed to go to ZERO value until a reverse split sucks in more suckers.

    If you still think FAZ and FAS are "good trading vehicles" that you just "cannot live without", then please take all of your money out of the market and put it in a boring savings account or home safe. When you go to get it, it will still be there. Otherwise, Direxion will use their tilted table to eventually bankrupt you through FAZ or FAS...It doesn't matter to them WHICH one you buy and for how long you hold it each time you buy it...You'll LOSE!


    On Jul 28 04:05 PM Missing_Link wrote:

    "The decay is MINIMAL unless you hold it for well over a week. Of COURSE they're sucker bets if you hold them an entire year. We've already gone over this many times. It's irrelevant to traders who know that you're not supposed to hold them for anywhere near that length of time. Their performance over an entire year proves NOTHING about the ETFs themselves.
    Jul 28, 2009. 06:02 PM | 4 Likes Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    Just curious...Does your system say there is more risk in BUYING FAZ now or FAS over the "near term"...No details and I don't want your secrets. Just which one is primed to BUY and which one to avoid now. Since they're "inverses", your system should always include one and exclude the other, correct???


    On Jul 28 03:37 PM Missing_Link wrote:

    "So I am only trading leveraged ETFs when their upside is MUCH larger than their downside."
    Jul 28, 2009. 04:03 PM | Likes Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    A "good trading tool" does not have a built-in "decay", unless you short the shite out of it day after day after day, NEVER covering.

    I think we can all agree that FAZ and FAS each have a built-in decay, correct? I mean, -63% and -88% for 2009 when they're SOLD as inverses pretty much DEFINES them both as SUCKER BETS...

    Now, do you really believe that a good trading tool to purchase is one with a built-in decay?


    On Jul 28 03:31 PM Missing_Link wrote:

    > By the way, "IHateFraud," if you really hate fraud so much, I'd urge
    > you to stop and consider for a moment that the REAL fraud is what
    > the Bespoke chumps are trying to do here -- keep good trading tools
    > out of the hands of ordinary investors, so that only the hedge fund
    > managers on Wall Street will have access to them.
    >
    > Leveraged ETFs require a warning, not a ban.
    >
    > Preventing their use outside of Wall Street can only create an uneven
    > playing field and further undermine the distrust between ordinary
    > investors and powerful financial institutions.
    Jul 28, 2009. 03:45 PM | 1 Like Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    Sorry...Obviously meant -3.5X and 3.0X instead of %s when wrong.
    Jul 28, 2009. 03:30 PM | Likes Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    Of course you're incorrectly assuming you are right on trend 100% of the time. Say you're better than avg...Maybe right 60% of the time. So you "accept" 2.7X instead of 3.0X when you're correct and you suffer about -3.5% instead of -3.0% when you're wrong.

    Have you been trading for long? I mean, you know, with REAL MONEY?


    On Jul 28 03:13 PM Missing_Link wrote:

    "I don't care if the Direxion funds don't get 3x leverage. If I can get only 2.7x leverage..."
    Jul 28, 2009. 03:28 PM | 1 Like Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    CORRECT! The fact that you have to SHORT both FAZ and FAS in order to make money long-term, when they are SUPPOSED to be INVERSES of each other PROVES ONE THING:

    THEY ARE FRAUD VEHICLES, DESIGNED TO DEFRAUD ANYONE WHO BUYS THEM...PERIOD.

    They attract those who are sucked in by the promise of 3X the movement when they're right on trend, but they NEVER DELIVER. And when trend moves against them, they suffer MORE than a 3X DECLINE...And those are just DAILY PERFORMANCES.

    So how can anyone claim they "know how to correctly use" FAZ and FAS when you ALWAYS get less than you should when you're right and you PAY MORE than you should when you're wrong??? .

    Do the research...Count how many DAYS FAZ and FAS each ACHIEVED either > or = 3X movement of RIFIN when correct and suffered > or = 3X LOSSES when incorrect...Then your eyes will be MAGICALLY OPENED.


    On Jul 28 02:52 PM krwharton wrote:

    > short them both.
    Jul 28, 2009. 03:04 PM | 3 Likes Like |Link to Comment
  • Leveraged ETF Ban Spreading Like the Flu [View article]
    The POINT IS:

    THERE SHOULD BE NO "DECAY" in a trading vehicle...And if it CONTINUES DAY AFTER DAY, WEEK AFTER WEEK, MONTH AFTER MONTH, then it is SIMPLE FRAUD!

    While they "try" to produce a daily 3X return, isn't anyone SUSPICIOUS when you can count the number of days on ONE HAND that FAZ and FAS have actually ACHIEVED the stated goal SINCE THEIR INTRODUCTION?!?!?

    THESE ARE FRAUD VEHICLES and nothing more than another way for Wall St to RIP-OFF Main St. It's like a car dealer saying, "Buy this car because when we designed it our GOAL was to achieve 40mpg some days when you drive it." So you BUY it and find that not only do you NEVER get 40mpg on ANY day you drive it, but there's a design flaw that LEAKS GAS from the tank even when it's PARKED and the BEST MPG you've ever gotten on any day is 10mpg!

    FRAUD...FRAUD...FRAUD! Mark my words...DIREXION will have to answer for FAS and FAZ one day soon. The SOONER the BETTER. They are RIP-OFF ARTISTS who prey on traders/investors who don't know when to cut a loss because "it will come back if I hold on long enough"...Well, many stocks will do so, but FAS and FAZ will NEVER COME BACK because they are DESIGNED TO REVERSE SPLIT just so they can suck in more suckers...Yeah, they may "deserve" it as some would say...But who really can be a champion of a FIXED GAME?

    If you're that person, then you're MORALLY BANKRUPT...
    Jul 28, 2009. 02:37 PM | 6 Likes Like |Link to Comment
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