Bear tuesday!

[procrastinator]

yep, a good day for SKF too.

[sogon]

I had a great day, the Proshares Ultrashort Financials sector ETF ‘SKF’ has been doing quite well. Up close to 8% on the day. GLD also did pretty good, up a couple of points. Hoping for some more good days.

[sogon]

I had a great day, the Proshares Ultrashort Financials sector ETF ‘SKF’ has been doing quite well. Up close to 8% on the day. GLD also did pretty good, up a couple of points. Hoping for some more good days.

[sogon]

I had a great day, the Proshares Ultrashort Financials sector ETF ‘SKF’ has been doing quite well. Up close to 8% on the day. GLD also did pretty good, up a couple of points. Hoping for some more good days.

[sogon]

I had a great day, the Proshares Ultrashort Financials sector ETF ‘SKF’ has been doing quite well. Up close to 8% on the day. GLD also did pretty good, up a couple of points. Hoping for some more good days.

[sogon]

I had a great day, the Proshares Ultrashort Financials sector ETF ‘SKF’ has been doing quite well. Up close to 8% on the day. GLD also did pretty good, up a couple of points. Hoping for some more good days.

[meadandale]

@stockstradr

Since my US mutual funds are both market index funds (e.g. S&P 500 and Wilshire 5000) does it make sense to invest in whole market inverse funds? That seems like I’m just pulling money from one pocket and putting it in the other.

I would think that in my case it would make more sense to have inverse funds in a few sectors (e.g. housing/banking) where the majority of the damage is being done and keep the whole market funds?

[meadandale]

@stockstradr

Since my US mutual funds are both market index funds (e.g. S&P 500 and Wilshire 5000) does it make sense to invest in whole market inverse funds? That seems like I’m just pulling money from one pocket and putting it in the other.

I would think that in my case it would make more sense to have inverse funds in a few sectors (e.g. housing/banking) where the majority of the damage is being done and keep the whole market funds?

[meadandale]

@stockstradr

Since my US mutual funds are both market index funds (e.g. S&P 500 and Wilshire 5000) does it make sense to invest in whole market inverse funds? That seems like I’m just pulling money from one pocket and putting it in the other.

I would think that in my case it would make more sense to have inverse funds in a few sectors (e.g. housing/banking) where the majority of the damage is being done and keep the whole market funds?

[meadandale]

@stockstradr

Since my US mutual funds are both market index funds (e.g. S&P 500 and Wilshire 5000) does it make sense to invest in whole market inverse funds? That seems like I’m just pulling money from one pocket and putting it in the other.

I would think that in my case it would make more sense to have inverse funds in a few sectors (e.g. housing/banking) where the majority of the damage is being done and keep the whole market funds?

[meadandale]

@stockstradr

Since my US mutual funds are both market index funds (e.g. S&P 500 and Wilshire 5000) does it make sense to invest in whole market inverse funds? That seems like I’m just pulling money from one pocket and putting it in the other.

I would think that in my case it would make more sense to have inverse funds in a few sectors (e.g. housing/banking) where the majority of the damage is being done and keep the whole market funds?

[stockstradr]

Sorry, I didn’t mean to imply that S&P 500 index is the only index worth shorting. For example, I’ve certainly noticed the NASDAQ is taking more of a beating than the S&P 500.

Do feel free to look ProShares’ short ETF’s that cover a wide range of indexes beyond the S&P500. Also do look beyond ProShares, as there are certainly other financial instruments to short this market. Post what you find so I can learn also.

However, choose such short ETF’s with caution and full knowledge of what you are buying. For example, when you buy a 2X leveraged market inverse ETF like “SDS” you are buying a very risky item, essentially you are buying a basket of short and OPTION positions – which is how they achieve the 2X leverage. If the market starts rising fast, of course SDS will fall TWICE as fast in response, which can quickly destroy a portfolio if you’re heavily weighted in SDS.

Also, if you are buying inverse ETF’s after the indexes have lost 10% in matter of ten days, you had better expect possible market bargain hunters may come in any day now and dominate the market for a short period (pushing the indexes up say 5%). You might buy today and find two weeks later the bargain hunters moved the markets up 5%, taking your SDS position DOWN 10% which will scare you. Then three months later you might find the markets are say 10% LOWER than they are today, putting that same SDS position UP 20% from today. I am just saying be ready to handle some rough water if you are buying inverse ETF’s.

Having said that, I’m stunned the markets are falling today. I think anyone would have expected an UP day after so many down days.

[stockstradr]

Sorry, I didn’t mean to imply that S&P 500 index is the only index worth shorting. For example, I’ve certainly noticed the NASDAQ is taking more of a beating than the S&P 500.

Do feel free to look ProShares’ short ETF’s that cover a wide range of indexes beyond the S&P500. Also do look beyond ProShares, as there are certainly other financial instruments to short this market. Post what you find so I can learn also.

However, choose such short ETF’s with caution and full knowledge of what you are buying. For example, when you buy a 2X leveraged market inverse ETF like “SDS” you are buying a very risky item, essentially you are buying a basket of short and OPTION positions – which is how they achieve the 2X leverage. If the market starts rising fast, of course SDS will fall TWICE as fast in response, which can quickly destroy a portfolio if you’re heavily weighted in SDS.

Also, if you are buying inverse ETF’s after the indexes have lost 10% in matter of ten days, you had better expect possible market bargain hunters may come in any day now and dominate the market for a short period (pushing the indexes up say 5%). You might buy today and find two weeks later the bargain hunters moved the markets up 5%, taking your SDS position DOWN 10% which will scare you. Then three months later you might find the markets are say 10% LOWER than they are today, putting that same SDS position UP 20% from today. I am just saying be ready to handle some rough water if you are buying inverse ETF’s.

Having said that, I’m stunned the markets are falling today. I think anyone would have expected an UP day after so many down days.

[stockstradr]

Sorry, I didn’t mean to imply that S&P 500 index is the only index worth shorting. For example, I’ve certainly noticed the NASDAQ is taking more of a beating than the S&P 500.

Do feel free to look ProShares’ short ETF’s that cover a wide range of indexes beyond the S&P500. Also do look beyond ProShares, as there are certainly other financial instruments to short this market. Post what you find so I can learn also.

However, choose such short ETF’s with caution and full knowledge of what you are buying. For example, when you buy a 2X leveraged market inverse ETF like “SDS” you are buying a very risky item, essentially you are buying a basket of short and OPTION positions – which is how they achieve the 2X leverage. If the market starts rising fast, of course SDS will fall TWICE as fast in response, which can quickly destroy a portfolio if you’re heavily weighted in SDS.

Also, if you are buying inverse ETF’s after the indexes have lost 10% in matter of ten days, you had better expect possible market bargain hunters may come in any day now and dominate the market for a short period (pushing the indexes up say 5%). You might buy today and find two weeks later the bargain hunters moved the markets up 5%, taking your SDS position DOWN 10% which will scare you. Then three months later you might find the markets are say 10% LOWER than they are today, putting that same SDS position UP 20% from today. I am just saying be ready to handle some rough water if you are buying inverse ETF’s.

Having said that, I’m stunned the markets are falling today. I think anyone would have expected an UP day after so many down days.

[stockstradr]

Sorry, I didn’t mean to imply that S&P 500 index is the only index worth shorting. For example, I’ve certainly noticed the NASDAQ is taking more of a beating than the S&P 500.

Do feel free to look ProShares’ short ETF’s that cover a wide range of indexes beyond the S&P500. Also do look beyond ProShares, as there are certainly other financial instruments to short this market. Post what you find so I can learn also.

However, choose such short ETF’s with caution and full knowledge of what you are buying. For example, when you buy a 2X leveraged market inverse ETF like “SDS” you are buying a very risky item, essentially you are buying a basket of short and OPTION positions – which is how they achieve the 2X leverage. If the market starts rising fast, of course SDS will fall TWICE as fast in response, which can quickly destroy a portfolio if you’re heavily weighted in SDS.

Also, if you are buying inverse ETF’s after the indexes have lost 10% in matter of ten days, you had better expect possible market bargain hunters may come in any day now and dominate the market for a short period (pushing the indexes up say 5%). You might buy today and find two weeks later the bargain hunters moved the markets up 5%, taking your SDS position DOWN 10% which will scare you. Then three months later you might find the markets are say 10% LOWER than they are today, putting that same SDS position UP 20% from today. I am just saying be ready to handle some rough water if you are buying inverse ETF’s.

Having said that, I’m stunned the markets are falling today. I think anyone would have expected an UP day after so many down days.

[Author]

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