Mid-Cap Bear 3X (MWN)
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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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Bollinger bands
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You know the tune.
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Triple leveraged bear funds were absolutely the dumbest idea of 2008 from a Wall St. perspective. Who actually paid over $250 for this....seriously...?
UltraLong
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3x ETFs are certain to drop over time, so they are the lazy man's way to grab a high CAPS score! Short this puppy!
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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.
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I think the rally in the markets has peaked and we are now in for a large slide down. I spell out my case in this blog post:
Still Bearish: FA and TA on S&P 500, Observations on the Economy
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=192777&t=01008419310939784033
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Fading every pick made by Ultralong
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This is one of many of UltraLong's Picks. With the VIX going down when the market goes down, as it has in the past few days, it's time to go long. The bottom is in. The worst sector, banks is being marked-to-profit. It's time to go long. Seeing as how it's easier to just copy UltraLong's picks than create a new list of my own by sorting through an immense quantity of etf providers, I'm joining him since I can't beat him.
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here we go again, and into earnings season. job loss report should be good indicator
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Rally over
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This etf is DOWN since 11/08 it's inception. If this can't make money in the worst market ever....than anyone who buys this is a literal and complete TOOL.
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Triple leverage erodes value over time.

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