Buying Bear Fund grzzx

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Submitted by jimmyle on November 19, 2009 - 9:24am

Has anyone here try to short stocks? I put some money into grzzx on Tuesday. grzzx basically follows the stock market inversely. I know it is risky but just want to gamble a little bit.

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Under the right conditions,
Submitted by DataAgent on November 19, 2009 - 10:04am.

Under the right conditions, shorting stocks can be very profitable. June thru Nov 2008 was a great time to short stocks. So was Jan-Feb 2009.

However, the current trend is up. It's been up since March. Why fight the trend?

Picking a "major top" in an uptrending market is purely a guess. And guessing can be expensive.

www.prudentbear.com
Submitted by scaredycat on November 19, 2009 - 2:13pm.

www.prudentbear.com

Shorting at this point is a
Submitted by deadzone on November 19, 2009 - 6:02pm.

Shorting at this point is a lot less risky than being long any stocks given the market just ran up 70% on no good fundamentals.

Better to use ETFs to short the market, try http://www.proshares.com/

"Market can remain irrational
Submitted by infoseeker on November 19, 2009 - 6:37pm.

"Market can remain irrational longer than you can remain solvent".. that being said I have had some luck in BEARX, EEV and SKF during last year's bloodbath... was just lucky on the timing. Ultrashorts are a good choice. IMO watch for the market to turn soar by certain percentage and then get in and get out with discipline after certain gains. Sideways market erodes bear funds.

The front load fee of BEARX
Submitted by jimmyle on November 19, 2009 - 8:12pm.

The front load fee of BEARX is 5.5%, too high for in and out strategy.

infoseeker wrote:
"Market can remain irrational longer than you can remain solvent".. that being said I have had some luck in BEARX, EEV and SKF during last year's bloodbath... was just lucky on the timing. Ultrashorts are a good choice. IMO watch for the market to turn soar by certain percentage and then get in and get out with discipline after certain gains. Sideways market erodes bear funds.

infoseeker wrote:"Market can
Submitted by CA renter on November 19, 2009 - 9:17pm.

infoseeker wrote:
"Market can remain irrational longer than you can remain solvent".. that being said I have had some luck in BEARX, EEV and SKF during last year's bloodbath... was just lucky on the timing. Ultrashorts are a good choice. IMO watch for the market to turn soar by certain percentage and then get in and get out with discipline after certain gains. Sideways market erodes bear funds.

That last sentence is very important. Essentially, time erodes the value of the leveraged (2X, 3X) inverse funds. They can lose money, even if the market trend is on your side. Do not buy these unless you really understand the risks.

http://seekingalpha.com/article/31113-in...

jimmyle wrote:The front load
Submitted by infoseeker on November 19, 2009 - 10:26pm.

jimmyle wrote:
The front load fee of BEARX is 5.5%, too high for in and out strategy.

infoseeker wrote:
"Market can remain irrational longer than you can remain solvent".. that being said I have had some luck in BEARX, EEV and SKF during last year's bloodbath... was just lucky on the timing. Ultrashorts are a good choice. IMO watch for the market to turn soar by certain percentage and then get in and get out with discipline after certain gains. Sideways market erodes bear funds.

ummm... yeah bearx currently has a high front load... however i dont remember having one last year. Besides the there was also zero transaction fee though fidelity. But i believe there was a short term trading fee. Given that ETFs are a better option.