I posted this in response to a post from SC, wanting to say something nice about 3x ETFs after SC blasted them. Then I realized it's pretty much buried in a conversation and no one will see it, so I'm posting it here.
Let's say you had $100,000 a year ago, and divided it into three parts:
$33,333 to stay in cash $33,333 to buy TZA (a 3x inverse ETF) $33,333 to buy TNA (a 3x ETF)
I know you say that you really cannot hold leveraged ETFs over time. But let's say you decide to hold these for a year to see what happens.
Take a look at these results:
After one year, the cash is still worth $33,333 After one year, TZA fell 90% to $3,434 After one year, TNA rose 260% to $120,074
After a year, your original $100,000 is now worth $156,842. That's a 56% increase in one year.
TNA is a SELL-IF (Sell on Monday if conditions are met). The candlesticks of yesterday and today combined to form a Bearish Meeting Lines Pattern (a bearish reversal that requires confirmation). Basically, sell on Monday if it appears likely that the close will generate a black candlestick.
TNA is now up 47% since the buy signal on Feb 9th. TNA was $36.69 at the time, and closed today at $54.14.
TZA is a BUY-IF (Buy on Monday if conditions are met). The candlesticks of yesterday and today combined to form a Bullish Meeting Lines Pattern (a bullish reversal that requires confirmation). Basically, buy on Monday if it appears likely that the close will generate a white candlestick.
TZA is now down 33% since the sell signal on Feb 9th. TZA was $11.04 at the time, and closed today at $7.30.
Summary: Possible reversal confirmations on Monday.
today is 3.14
Don't ever forget the Pi proportion.
Since today is SUNday and the market is closed where & when was the Pi ritual performed?
It was performed on 3.12 & AAPL held the ritual. (Would you like some AAPL Pi?)
The open & high on 3.12 in AAPL was 227
22/7 = Pi
Since the market is closed on 3.14 why was the ritual performed on 3.12 vs 3.15.
3*12 = 36
Sum of 1:36 = 666
The co-relational Pillars of the construct on display friday. It was a very very important day on friday.
I'll talk about the $SPX co-relational value : date this week sometime.
Think I got it. Thanks.
I posted this in response to a post from SC, wanting to say something nice about 3x ETFs after SC blasted them. Then I realized it's pretty much buried in a conversation and no one will see it, so I'm posting it here.
Let's say you had $100,000 a year ago, and divided it into three parts:
$33,333 to stay in cash
$33,333 to buy TZA (a 3x inverse ETF)
$33,333 to buy TNA (a 3x ETF)
I know you say that you really cannot hold leveraged ETFs over time. But let's say you decide to hold these for a year to see what happens.
Take a look at these results:
After one year, the cash is still worth $33,333
After one year, TZA fell 90% to $3,434
After one year, TNA rose 260% to $120,074
After a year, your original $100,000 is now worth $156,842.
That's a 56% increase in one year.
That's really not that bad.
whats the implications of 53.03? Are you saying that the next target?
SC,
Let's say you had $100,000 a year ago, and divided it into three parts:
$33,333 to stay in cash
$33,333 to buy TZA (a 3x inverse ETF)
$33,333 to buy TNA (a 3x ETF)
I know you say that you really cannot hold leveraged ETFs over time. But let's say you decide to hold these for a year to see what happens.
Take a look at these results:
After one year, the cash is still worth $33,333
After one year, TZA fell 90% to $3,434
After one year, TNA rose 260% to $120,074
After a year, your original $100,000 is now worth $156,842.
That's a 56% increase in one year.
That's really not that bad.
sequence in RIMM
88.08 – high
35.05 – low
53.03 – diff-high/low
SPY : RIMM co-relational move
http://www.flickr.com/photos/47091634@N04/44297…
IWM co-relational volume:
2/05/10 19,299,440 9:30 60 min print
3/12/10 19,381,466 9:30 60 min print
Oh boy Sundancer, I fear that we may close the vix below 17.95 today which means a melt up in the SPY next week, correct? What if we close on 17.95?
The view from Americanbulls
TNA is a SELL-IF (Sell on Monday if conditions are met). The candlesticks of yesterday and today combined to form a Bearish Meeting Lines Pattern (a bearish reversal that requires confirmation). Basically, sell on Monday if it appears likely that the close will generate a black candlestick.
TNA is now up 47% since the buy signal on Feb 9th. TNA was $36.69 at the time, and closed today at $54.14.
TZA is a BUY-IF (Buy on Monday if conditions are met). The candlesticks of yesterday and today combined to form a Bullish Meeting Lines Pattern (a bullish reversal that requires confirmation). Basically, buy on Monday if it appears likely that the close will generate a white candlestick.
TZA is now down 33% since the sell signal on Feb 9th. TZA was $11.04 at the time, and closed today at $7.30.
Summary: Possible reversal confirmations on Monday.