dexion10 (28.21)

UPDATE - BEARISH ALLSTAR Bought Bullish 3x Levered ETF / portfolio increased 50% yesterday| It's because I hate the market

November 14, 2008 – Comments (1) | RELATED TICKERS: TNA , BGU , EEV

When you hate the the stock market fundamentals like I do it makes you very cautious. I prefer to short stocks currently - owning stocks makes my skin crawl. But yesterday I was a 

 Many thanks to all of you recommended my blog that basically explained that you have to be skeptical of +300pt days in a Bear Market. Read my prior post (+300 point up days are bad) . 

When the S&P hit 1005 (on Nov 3) that was a red flag.   2004-2007 the Bull Markets didn't have ANY +300 point days.  While I can tolerate a +300 point day off a bottom - when you have a 300 point day on low volume and well above the last bottom - you have to sell stock and prepare to short.

Today doesn't count as a bad +300 point up day because it was "a bottom" (probably not THE BOTTOM) and the volume was heavy.

TODAY WAS SPECIAL-  I bought 3x levered ETF's:

I Made my first trade in two  3x leveraged ETF's.  I dedicated 30% of my portfolio to these beastly weapons of massive wealth creation / destruction. 

SEE GRAPH HERE: 

 

My personal portfolio in my margin account increased 50% today because I egregiously used margin.  This was "TITANIC TRADING". To make this trade you had to be prepared to go down with the ship!

WARNING:  These ETF's are widow makers. These ETF's just launched around November 4th...so they are not as broken as older levered ETFs. Incidentally, I believe that these levered ETF's will all break at some point.

I don't recommend them for the faint of heart - these are cowboy trades.  In the future my plan is to only use the 3x ETF's after mis-timing a buy with a 2x ETF.

 

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 LIST OF 3X LEVERED ETF TICKERS

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BGU Large Cap Bull 3X Shares – Russell 1000 BGZ Large Cap Bear 3X Shares – Russell 1000 TNA Small Cap Bull 3X Shares – Russell 2000 TZA Small Cap Bear 3X Shares – Russell 2000 ERX Energy Bull 3X Shares – Russell 1000 Energy ERY Energy Bear 3X Shares – Russell 1000 Energy FAS  Bull - Russell 1000 Financial Services FAZ Bear - Russell 1000 Financial Service

 

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TODAY WAS PERVERBIAL HOME-RUN SO LIQUIDATED 50% OF MY PORTFOLIO AT THE CLOSE.

You see when you start bragging about a trade it's time to sell... a wise old man told me that and he was right... if you are bragging about a trade you should sell.  The market will always keep you humble.

I AM STILL BEARISH - THIS MARKET STILL STINKS & CAN NOT BE OWNED

MY NEXT MOVE WILL BE TO SHORT THE MARKET

 

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