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XMFHelical (< 20)

An example of stupid



January 22, 2008 – Comments (1)

Not to beat a dead horse, but readers of this blog are aware of my low opinion of the Healthshares ETFs, despite liking many of the companies that make them up.

These ETFs are low market cap narrowly traded indexes.  One big  rule of thumb is to NEVER NEVER NEVER use a market order when buying narrowly traded securities, ever ETFs.  NEVER.

So lets look at what happened to some poor slob today.  I was sitting on a CAPS underperform of HHB, an ETF that tracks companies involved with patient care services.  This is a good business segment in my opinion and worthy of an ETF breakdown to find the companies in this index I'd like to own (at least in CAPS world).  I was not doing well with my underperform on HHB.

It closed Friday at $24.29.  Some moron panicked sold this morning, I assume, with a market order to sell 1500 shares.  Some opportune individual snatched them at $16.49, a > 30% loss.  This allowed me to close my previously dismal CAPS underperform for a +19.5 (YAY).  HHV did not trade again til later in the day, when someone (perhaps the same dude that bought for $16.49) made a trade at $23.65.  So so dumb. 

I also notice that (likely) this same poor slob did the same thing with HHV (Healthshares enabling technologies - another bad ETF filled with good companies).  This closed Friday at $31.72, opened today with a 1500 share order at $22.93 (down >27%) , and next traded again later in the day at $30.40.  (I couldn't close this CAPS underperform at a gain - they weren't quite stupid enough to overcome my pre-established deficit).  STUPID, STUPID, STUPID.


NEVER NEVER NEVER use a market order when buying narrowly traded securities, ever ETFs.  NEVER. 

Unless of course I am short them in CAPS.



1 Comments – Post Your Own

#1) On January 23, 2008 at 1:04 AM, Hezakiah (23.12) wrote:

Similar thing happened right out of the gate today with SDK.  Spent nearly the whole day in the 85 range, but someone bought it a few minutes in at 100!  I wish I could have helped fill that order.

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