FINANCIAL BULL 3X (FAS)

FAS as in FASTEN YOUR Seatbelts! I play the 3X ETF's a few at a time when I have some sentiment. It could be that the scent is bad this cycle, but I think the Dubai correction was a bit overdone for US Financials. Overall, I see more up than down over the rest of this year. Short term play.

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.

new bear market

Short this double wt'd leveraged log ETF and its short equivalent, FAZ

THIS IS THE SYMBOL TO BUY TO SAVe THE REPUBLIC eg; " TO BUY BACK OUR COUNTRY FROM CHINA! '' AKA,''2/30'' THE GREAT PATRIOT MOVEMENT!2 hrs and 30 min's after the opening bell save the USA AND BY FAS, see KENT66blog

This ETF has underperformed the S&P at a time when it should have been significantly outperforming the S&P.

If financial stocks run into another round of problems, this ETF will crash, if they do not, then it is likely slowly underperform the market over the course of a couple years.

Ultra-shorts and Ultra-pros are all bad investments due to daily rebalancing

has to win

The run has to end at some point, nothing goes straight up endlessly.

These ultras don't make sense, and this one's on a bubble.

CIT pulling you down?

Look at the technical picture here...this ETF basically tracks the S&P with slighlty more volatility. I would say as long as the S&P is going up, this ETF will ever so slightly outperform it.

The financials are truly screwed, it's just the looney toons in Washington have tried to pull the blanket over our eyes...

We've got a scary number of foreclosures coming up... this guy's toast

win win win win win win

this ETF made this ralley under fake financial recovery. need a 20% correction..

financials will continue to lead

hdgf2

I see this dipping in Oct to $45 then shoot to $120 by 2nd qtr 2010