Direxion Shares ETF Trust Large Cap Bear 3x (BGZ)
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shorting all ultrashorts, bears, or any of these terrible "leveraged" funds.
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testing what's been said here on CAPs.
Do shorting all 3x ETFs mean easy net returns?
YES, IF, you rebalance once ratio goes 1.7 (or 1/1.7)
In a sideways or down market this would also translate into net points on CAPs
But your accuracy will be hurting, you'll mostly be 50% accuracy at best on this strat.
Current batch I am redthumbing here on CAPs today (at these levels):
BGU/BGZ
MWJ/MWN
TNA/TZA
FAS/FAZ
Further on my personal thoughts on this strat:
using hypothetical scenarios, actual 3x #s from '09, and 2x funds from differing periods:
Worst case scenario, this strategy loses in a year: (5%)
Best case scenarios in a year: 10%+
Should expect most returns in a year: 3-7%
In implementing this strat, pray for two things: 1) Hope your short shares don't get called back by broker & 2) if in rebalancing you wish to increase position, hope you can short more.
This strategy may be a good play to allocate comparable to the fixed income/bond allocation of portfolio or completely replace that bond allocation with this.
I would say maximum amount you sell each position is 23% of face value of account. IE a $10,000 acct, short sell a maximum $2,300 worth of each ETF.
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Ultra-shorts and Ultra-pros are all bad investments due to daily rebalancing
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Cake Dex test run
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you knew it, contrarian
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Financial sector earning
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3x large cap bear ETF
underperform reason: shorting the ultrashorts long term == free CAPS points.
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Re-shorting the ultashort ETFs
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beware the ides of August
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alstry finally got to me.
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Half-life period of leveraged ETF is inversely proportional to its volatility.
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Based on my call that the rally is going to see a pull-back over the next few weeks I am giving all Bear ETFs a thumbs up and all Bull ETFs a thumbs down in the short run. I am only invested in a small sampling of these bear ETFs but in order to raise my CAPS score I entered several here.
I own shares in this ETF.
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As of today, my one favorite stock. I have 105K real money into BGZ as the clowns at CNBC and other pumpers are out o hot air.
Ca. crashes, GM crashes, rates rise, foreclosures rise, 600K unemployment and they are all telling you " Better than expected" ... DOW 12,000!
I say Dow 7200 next... Staying away from skf and faz as goverment i propping up bank stocks.
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trying to boost my accuracy
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Stocks are overbought, investors getting overly optimistic about end of a recession.
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Fading every pick made by Ultralong
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Market neutral arbitrage strategy. Has yielded around 200 points since mid March. The accuracy, as expected, is 50%. See blog.
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here it is - my first conspiring to change my rating with a trade i woould not do in real account
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Following GMX & my own feeling we're due for a market drop/correction
Direxion Shares ETF Trust Large Cap Bear 3x

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