Seeking Alpha
  • cheme
    ALWAYS track levered ETFs using underlier levels...e.g. UPRO=SPX, TZA=R2K, DTO=CLZ11, etc. Lvrd ETF levels are NOT reliable-decay, etc.
    11/18/11
    Reply (8)
    • campusglass: Umm, can you poss explain that a bit further?
      11/18/11
    • campusglass: oh like market up spxu up disconnect?
      11/18/11
    • cheme: Let's say you want to enter a position, make the decision based on a 1x index or underlier. DO NOT USE levered ETF levels to make decisins.
      11/18/11
    • cheme: e.g. when I enter a 3x R2K short, I would look at the R2K level and NOT even consider the TZA level.
      11/18/11
    • WreakHavok: fas x1 is?
      11/18/11
    • cheme: Wreak, use XLF to track FAS or FAZ. Always chart the underlier.
      11/18/11
    • Romar: Good idea to check underlier
      11/18/11
    • campusglass: I like that cheme. Much appreciated.....great tip
      11/18/11
      From other sites