Any 2x or 3x etf is only good when you have a large move in one direction or the other. During the consolidation periods, they all erode and fall lower, if when the underlining stock that it follows is flat.
I lost a lot of money on FAZ, and if I every did play them again, I'd only go short… never long. That way, even if the market starts going sideways for awhile, your etf will gradually fall lower. It's designed that way, so you have to take that into account before you take a position in one.
If you think the market is going up, you would go short on the bear etf (which is basically going long), and if you think the market is going down, then you would short the bull etf.
Time decay wouldn't hurt you as much, as they would naturally start to fall if the market trends sideways before it makes the move you want it too.
In the area where I live, which is the Southeast US, things are getting worse, not improving. Unemployment is increasing and the housing market is about ready for the next leg down. Many banks have not forclosed on properties that are 12 months behind on payments. The lenders already have too many foreclosed properties up for sale. It's not looking good from my perspective.
not just the Elliot Waves and technicals that show things paddling down Hogan's Alley – I have never seen so many stocks so expensive compared to earnings before fundamentally its been a ponzi scheme since like last summer.
The greater fool theory has been rampant for too long now the only thing is that the risk of ending up being the greatest fool landed with worthless stocks when it inevitably corrects rules me out of any long positions
It's the way the elliottwave patterns are lining up. Wave 3's are super powerful, and that's what is coming up next. By looking at the charts, I think we will peak on February 8th-9th for the larger wave 2 up… which is happening right now.
We could be up to 113-114 spy by next Monday or Tuesday. Then the wave 3 down will start and should take us down to around 1030 by opx. It will go hard and fast, as all wave 3's do.
I guess you could call it a mini-crash as a 100 point drop isn't exactly a “Crash”, but it's still a scary drop… if you're caught long of course.
Red, yor sure don't hedge your predictions (like some). What do you think of beat up etfs like FAZ, SKF or VXX? Downside appears low even if wrong.
Red, what will you do if we just remain relatively flat or dribble slightly down before Feb 9th/10th? Will you still short into that?
Any 2x or 3x etf is only good when you have a large move in one direction or the other. During the consolidation periods, they all erode and fall lower, if when the underlining stock that it follows is flat.
I lost a lot of money on FAZ, and if I every did play them again, I'd only go short… never long. That way, even if the market starts going sideways for awhile, your etf will gradually fall lower. It's designed that way, so you have to take that into account before you take a position in one.
If you think the market is going up, you would go short on the bear etf (which is basically going long), and if you think the market is going down, then you would short the bull etf.
Time decay wouldn't hurt you as much, as they would naturally start to fall if the market trends sideways before it makes the move you want it too.
Hope that makes sense?
In the area where I live, which is the Southeast US, things are getting worse, not improving. Unemployment is increasing and the housing market is about ready for the next leg down. Many banks have not forclosed on properties that are 12 months behind on payments. The lenders already have too many foreclosed properties up for sale. It's not looking good from my perspective.
Red, yor sure don't hedge your predictions (like some). What do you think of beat up etfs like FAZ, SKF or VXX? Downside appears low even if wrong.
not just the Elliot Waves and technicals that show things paddling down Hogan's Alley – I have never seen so many stocks so expensive compared to earnings before fundamentally its been a ponzi scheme since like last summer.
The greater fool theory has been rampant for too long now the only thing is that the risk of ending up being the greatest fool landed with worthless stocks when it inevitably corrects rules me out of any long positions
It's the way the elliottwave patterns are lining up. Wave 3's are super powerful, and that's what is coming up next. By looking at the charts, I think we will peak on February 8th-9th for the larger wave 2 up… which is happening right now.
We could be up to 113-114 spy by next Monday or Tuesday. Then the wave 3 down will start and should take us down to around 1030 by opx. It will go hard and fast, as all wave 3's do.
I guess you could call it a mini-crash as a 100 point drop isn't exactly a “Crash”, but it's still a scary drop… if you're caught long of course.
CRASH!! …. WHY?
Why do you expect crash, when all things are getting better including employment.
I know, I know. This is either a 2nd wave or a B wave, in either case it's probably going to try our patience.
very interesting and thanks for sharing but where do these vibrations come from and what form do they take?
Also when you say closed to what exactly?
[Forgive me I am still new to all this and finding it fascinating]