I'm a 100% cash now Steveo… I'm just waiting for the finally push higher on Friday or Monday. Target is 112-113 spy. I'll be going 100% short at that area. Yes, I'm that confident that the market will fall. My target is 104 by OPX.
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.
Cash is a position, agreed on the fake job numbers….every Gov contract requires businesses to increase their overhead by reports on job creation by specific monies. Really a bunch of bull – so to speak.
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.
Once that chart starts to show signs of rolling back down (look at the MACD) I'll be going short at whatever level it's at. Either this Friday or Monday… I'll be short! It will roll by Tuesday… I'm betting the farm on it!
I'm a 100% cash now Steveo… I'm just waiting for the finally push higher on Friday or Monday. Target is 112-113 spy. I'll be going 100% short at that area. Yes, I'm that confident that the market will fall. My target is 104 by OPX.
Glad to have you join me Crash. This Friday or Monday will be the time to go short. We just have too wait for another push higher first. Patience….
I believe you. I am still short.
Red ….
Wait just getting my coat (and helmet), I'm coming with you ………….!
Crash
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?
Cash is a position, agreed on the fake job numbers….every Gov contract requires businesses to increase their overhead by reports on job creation by specific monies. Really a bunch of bull – so to speak.
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.
Once that chart starts to show signs of rolling back down (look at the MACD) I'll be going short at whatever level it's at. Either this Friday or Monday… I'll be short! It will roll by Tuesday… I'm betting the farm on it!
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?