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Recs
Mid-caps have further to go on the downside.
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Going bearish now
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Will lose tracking accuracy if held more than 1 day, so definitely will underperform in the long run. No brainer.
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Housing will continue to be in a slump and government at all levels and all around the globe will be struggling to pay off debt. Any "growth" will probably be due to printing money to fight deflation. It will not be real growth. Consumers will continue to protect themselves by controlling their spending. All this adds up to a lower stock market.
Recs
Ultra-shorts and Ultra-pros are all bad investments due to daily rebalancing
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I recently ran into this article on an Ultra oil ETF strategy:
http://www.howtowriteoptions.com/ultra-covered-call-strategy-fails
By shorting each side of the Long/Short ETFs I will eventually come up on the positive end. Not sure how effective this will be in real life but long term on CAPs combo-ing these ETF is a sure winner.
I think all of these Ultras are going to crash hard. I have received several warnings from my broker on the risk of these funds and some of my friend’s brokers will not even execute transactions on these.
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When the overly optimistic FOMC says that household spending will be "constrained" by sluggish income growth, ongoing job losses, lower household wealth, and tight credit AND Shanghai stocks hit a seven-week low, then you know this bear market rally is finally over!
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QUICK! Pick a reason to exit a market that has risen too fast and gotten too expensive. Here are three to choose from: buying power is getting exhausted according to DeMark indicators; daily sentiment indicators are 88% bullish; RSI’s and oscillators are over extended.
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If you believe in the current market rally this is a no-brainer. In case the market rally holds history tells that small caps will outperform the S&P 500 and this ETF gives you twice the Russel 2000 performance.
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Shorting into the rally!
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Just keeping up with MLG100 by picking riskfree ETFs
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I am not sure we are at the bottom, but I am sure that we are very close. I am recommending a long position in this etf. Every time there is a 10% drop in the index you should buy, and every time there is a 10% increase in the index you should sell. I do not recommend purchasing and holding ultra etfs long-term. The fees are simply too high. Play the trading range and don't get too greedy.
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Because Ultras Suck
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PROSHARE BULLS
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2x long
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