Why I closed all my 2x short bets... So I could open them AGAIN!
here is a quick note:
I made the mistake of calling a top with levered 2x indexes as many CAPS players have. These products are now down 60-90% since march... Since I've alreadly lost > 50% being long these things I decided to close them today and re-open them today because I think this could be "a top"... I've been wrong before - but today was a good spot to try again for lots of technical reasons.
In my ideal world the market will fall fast and hard and I'll gain lots of CAPS points from the +20 2x INVERSE ETFs I green thumbed today.
if this turns out to be THE TOP then I could potentially make 60% to +100% on these levered ETFs and actually erase all my loses (longs have greater pct upside than shorts)....
additionally if the market falls and these etfs rise I'll get double the percentage gains in CAPS.
Basically I doubled down strategically today - and I have a theoretical chance to become a top 10% CAPS player if all goes my way.
Wish me luck - I'll need it.
FYI - in real life I recently re-entered my short of X and I am short AMZN - I closed out my Long of JACK. My only current long is PACR (a piece of crap with a chance of being something someday)
2x levered ETFs are long-term garbage - they are guaranteed to end up lower in 2 years than they are now regardless of their underlying index - because the embedded costs and friction caused by trading options eats up the principal over time. They are long-term worthless!
Levered ETFs are only worth using for short term bets - but that is like going to the casino.
I am long-term short all levered long etfs... because even if the market goes up forever these products will eventually end up at 0.