PROSHARES TR (SAA)

jowenmofield (99.68) Submitted: 8/19/08 12:08 AM : Start Price: $57.60 SAA Score: 6.81

I started this account to track the performance of investing in Proshare Ultra Long and Short ETF's. This investment strategy of either being long or short these ETF's is based up technical indicators that I have developed. It is intended to follow the ebb and flow of the natural short-term cycles that occur in the securities markets. The one risk exposure is when dramatic declines occur when long due to natural disasters, terroist acts, or other geopolitical activities.

Over the last year this investment strategy has performed very well. While we are in a bear market at the moment, from a short-term investment cycle we are in a short-term bear market rally. If you wish you can read my blog entries under jmofield player over the last several months concerning these short-term market cycles. You can judge for yourself based on my comments concerning the change in direction of the markets since March 2008 from reviewing my blog entries.

The primary reason I use the Proshare Ultra ETF's is that their investment objective to return double the performance of the particular index that they track or mirror. While their are over 50 Proshare ETF's,

I only actually invest in the Proshare Ultra Long ETF's: DDM, MVV,QLD,SSO,URE,UWM,UYG, and SAA (it doesn't have options but I still use it.) I don't invest in Ultra Long Oil (DIG) and Ultra Long Basic Materials (UYM)

I only invest in the Proshare Ultra Short ETF's: DXD,EEV,EFU,FXP,MZZ,QID,SDS,SKF,,SRS,TWM. I don't invest in Ultra Short Oil (DUG) and Ultra Short Basic Materials (SMN).

I do use options on these ETF's but unless it's a very actively traded ETF they are thinly traded and have wide bid/ask ranges. You have to use limit orders but it does give you the opportunity for covered call trading in periods of high short term volatility which we have been experiencing for the last year.

For more intormation on Proshare ETF's visit their website at www.proshares.com.

To illustrate the performance of these ETF's based on my technical indicators, I will use approximately 38 of the Proshare Ultra ETF's at all times. In times of market upswings I will be short the Proshare Ultra Short ETF's and Long the Proshare Ultra Long ETF's. When the market is in a downturn, I will be long the Proshare Ultra Short ETF's and short the Proshare Ultra Short ETF's.

As always do your own research, enlist the advice of a professional advisor, and remember no one's strategy works 100% of the time in the short-term.

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