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jmofield (< 20)

Power Share Ultra Short ETF's (DUG,DXD,EEV,MZZ,QID,RXD,SDS,SKF,SMN,SRS,TWM

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April 19, 2008 – Comments (4) | RELATED TICKERS: SRS , TWN

This PowerShare ETF was selected for shorting based upon one of the stock screening criteria that I have developed using the Vector Vest software. All of the stock selctions that are included in my portfolio are from several different screening criteria using Vector Vest. These screening criteria search for stocks to invest for both both long and short positions.

I am short this PowerShare UltraShort ETF. This short trade was selected because it has recent shown price weakness over the last several weeks. It is trading near or below its 40 day moving and near its 115 day moving average. Since it has shown recent weakness, my target price is for it to trade potentially down to it's price lows generally around the late October or first of November 2007.

Since I am short this ETF and the PowerShart UltraShort ETF's should perform as much as double their index, if we have a significant rally in the market sectors that these ETF's cover I expect to see the biggest gains in these trades versus the performance of the S&P 500.

I am long all the PowerShare Ultra ETF's DDM,DIG,,MVV,QLD,ROM,RXL,SAA,SSO,UCC,UGE,UKF,UKK,UKW,UPW,URE,USD,UVG,UVU,UXI,UYM,
and short all the PowerShare Ultra Short ETF"s (DUG,DXD,EEV,MZZ,QID,RXD, SDS,SKF,SMN,SRS,TWM,at this time.
I prefer trading the PowerShare Ultra ETF's because their objective to return is most cases double the return of their underlying index. Great if your own the right side of the trade in either an up or down market

I use screening techniques I have developed using Vector Vest that provide disciplined timing criteria for either being long or short various market sectors using the PowerShare ETF's. The results are trading ETF's as little as a couple of times annually or much as 4-6 times per year. In my opinion, ETF's are the best way to invest in the overall market.

In reviewing this information, please remember this post just reflects my opinion and should not be used for anything other than for entertainment purposes relating to MSN's contest. You should use your own judgement and seek appropriate advice for any investments

4 Comments – Post Your Own

#1) On April 20, 2008 at 11:35 AM, bhessel (32.03) wrote:

"MSN's contest"??? What are you, some kind of apostate? Corporate mole?

LOL Given your theory, it's a wonderment that you have 192 picks and can't find room in your port to be long WWY (the "Double your pleasure, double your fun, with Doublemint, Doublemint, Doublemint gum" folks). 

Between one thing and another, I'm getting a bad case of cognitive dissonance here.

Good post, never-the-less. Love the strategy. (Although from a tactical perspective I am not ready to go long here myself, particularly on housing and financials.)

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#2) On April 20, 2008 at 1:45 PM, leohaas (31.83) wrote:

Shorting the Ultrashort ETFs? Wow, you are an optimist. I am with you, but I can't wait to read the comments from the "Sky-is-falling-Gold-to-the-moon-Vote-Ron-Paul-Support-the-2nd-ammendment-Abolish-the-FED-and -income-tax" blog hoggers...

 

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#3) On April 22, 2008 at 1:24 AM, costanostra (< 20) wrote:

Obviously he's doing something right with a score above 90 but your never going to get the Score Club 100 charm playing only the ETF's which is one of the charms you need to win the grand prize. I tend to believe picking enough individual stocks that outperform opposed to playing only the double inverse ETF's trying to guess the direction of the market will win in the end. Although what do I know -- I only started CAPS a month ago. 

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#4) On May 01, 2008 at 6:24 PM, jmofield (< 20) wrote:

I am now short all the  Long ETF's and long all the Short ETF as of 4/30/08.  With the market up almost 200 points today, we may see a break out to the upside which will absolutely kill my game playing.  But I still do believe that we will see a pullback some time in the next couple of weeks. See my blog post on 4/30/08 for further information.

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