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Eversar
Eversar vip
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Eversar's Blog : Triple ETF's: 3x the fun

Date February 4, 2009    Comments Comments (9)    Recommended (391)   
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Never knew these existed. They look wonderful for trading purposes.

Bull
BGU Large Cap Bull 3x Shares Russell 1000 300% RIY
TNA Small Cap Bull 3x Shares Russell 2000 300% RTY
ERX Energy Bull 3x Shares Russell 1000 Energy 300% RGUSEL
FAS Financial Bull 3x Shares Russell 1000 Financial Services 300% RGUSFL
DZK Developed Markets Bull 3X Shares MSCI EAFE Index 300% MXEA
EDC Emerging Markets Bull 3X Shares MSCI Emerging Markets Index 300% MXEF
TYH Technology Bull 3X Shares Russell 1000 Technology Index 300% RGUSTL
MWJ Mid Cap Bull 3x Shares Russell Midcap Index 300% RMC
Bear
BGZ Large Cap Bear 3x Shares Russell 1000 -300% RIY
TZA Small Cap Bear 3x Shares Russell 2000 -300% RTY
ERY Energy Bear 3x Shares Russell 1000 Energy -300% RGUSEL
FAZ Financial Bear 3x Shares Russell 1000 Financial Services -300% RGUSFL
DPK Developed Markets Bear 3X Shares MSCI EAFE Index -300% MXEA
EDZ Emerging Markets Bear 3x Shares MSCI Emerging Markets Index -300% MXEF
TYP Technology Bear 3X Shares Russell 1000 Technology Index -300% RGUSTL
MWN Mid Cap Bear 3x Shares Russell Midcap Index -300% RMC

Some quick comments about some of these:
Most of them correspond to Russell indices so they will not behave exactly like their DJ counterparts. Proper research into each fund will be a requirement for investment. That being said a select view i find particularly enticing.

1. The two financials the bull (FAS) & the bear (FAZ) both offer enourmous potential for quick, skilly timed traders.

2. The small cap bull (TNA) small caps as a group outperform large caps coming of a recession. Timing is of course the problem.

3. The energy bull (ERX) & bear (ERY) offer similar trading potential as the financials.


9 Comment(s):

Author Ktoyou     Date February 4, 2009 23:32  Edited: February 4, 2009 by Ktoyou Abuse this post Report Abuse
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Cramer really put down the ETF's tonight on his show. For instance, shorting the financials as they are going down is why our markets are failing. There was a time when short sells were disallowed so the ETF's were developed as a way around the law. In ending he also said that you have to be very good or a daytrader in order to even make any money on them since they are very tricky. The long ETF's he even had a bad view of since it includes an array of stocks and it only takes one to take the whole ETF down badly and if the sector is down then you can have a major loss. He really did not have anything good to say about ETF's and short selling. It is his view that it is clear manipulation of the market. This is his opinion and wanted to share this and thank you for sharing the above.
Author Eversar     Date February 5, 2009 00:24 Abuse this post Report Abuse
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I dont watch Cramer's show nor have i ever been a fan. He has certainly acomplished much more than i have. With that being said, if he did describe ETF's in the way u say, market manipulation? absurd. If that were true, than hedge funds mutual funds must also be included. Cramer managed a hedge fund. Is he guilty of market manipulation? If anything ETF's get investors more options, resulting in less manipulation. I cant play futures, ETF's give me an option to play commodities. If Cramer actually said in the way you described he is indeed a hyporcrite.

As far as the short selling goes; do short squeezes happen yes? Sometimes for a good reason. As we have seen with the banks, their value without government assistant is zero. They deserved to get shorted. If they have value they will survive and the shorters will get screwed.
Author Ktoyou     Date February 5, 2009 01:32 Abuse this post Report Abuse
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You have it backwards......we the taxpayers are getting screwed by shorting the banks and making them fail!! I understand your frustration but if everyone did this it makes them fail. They stopped short selling for awhile back and then ETF short selling came into existance as a substitute to get around that. But I have nothing against going long in an ETF but what he was attempting to explain is that yes it is safe but in the end you really don't make anything. So best to go with the very best even if it is only 2 to 5 shares and keep the dividend in the cash acct. until you have enough to buy more stock. The best buy right now is GS because they are now in charge of the Fed. Reserve funding on failed equities and will be buying those from banks then turning them over to their customers probably. If you just look at the symbol you will see that it is half it's worth and the dividend will return once they return the money they were given. I did not know they were even given any money. They were in my city just yesterday giving the yearly conference and they are huge. We have a lot of elite people with lots of money so they go where the money is. I like the list and right now my printer is broken or I would print out this one. You did good.
Author JDShots     Date February 5, 2009 02:26  Edited: February 5, 2009 by JDShots Abuse this post Report Abuse
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See my posts titled:
"Leveraged ETF's Exposed" for more details on these ETF's

and

"No end in sight to the problems within the banking industry" for potential causes of recent bank and credit troubles, of which leveraging is a big part.
Author Eversar     Date February 5, 2009 07:34 Abuse this post Report Abuse
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I was simply trying to point out that; while i cannot speak for Cramer, im sure he has no problem with the "average" investor purchasing a mutual fund. With the exception of higher costs & commisions for everyone involved; they are no different.

Are ETF's tricky? the leveraged ones? of course. I havent had the time yet to read the above article by JD, i will certainly read it later today. IMO leveraged ETF's need to be used by experienced investors for trading purposes. However other ETF's allow me an exposure to markets i otherwise never would have gotten involved in. I am currently short treasuries (TBT).

I understand your arguement on the short selling of finiancials. I thought the finiancial ETF's were also ban from trading when they came out with that no short list? Does short selling enmass hurt us? ya obvious. However short selling is there for a reason and u cannot blame short sellers for this crisis. I certainly will not blame anyone for shorting a company whose value is zero without government assitance.
Author JDShots     Date February 5, 2009 08:19  Edited: February 6, 2009 by JDShots Abuse this post Report Abuse
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Although excessive leveraging played its part, I don't believe there is anything wrong with shorting securities; seems to be a natural part of market balancing.

The government doesn't like investors shorting financial institutions because it might cause the collapse of our bubbled and over-leveraged financial industry. If we looked behind the curtain, we may see them pulling the levers and wind up causing a snowball run on the banks.

This is why they won't tell us where the money is going and what it is buying.

Here are some notable quotes from banking executives regarding TARP funds:

"We have not disclosed that to the public. We're declining to." Thomas Kelly JP Morgan Chase rec'd $25 Billion from the TARP

"We're not providing dollar-in, dollar-out tracking." Barry Koling SunTrust rec'd $3.5 Billion from the TARP

"We manage our capital in its aggregate." Tim Deighton Regions Financial rec'd $3.5 Billion from the TARP


The Market Oracle - Top Financial Markets Stories of 2008
http://www.marketoracle.co.uk/Article7948.html

Seeking Alpha - Fed Won't Disclose Who Got the $2 Trillion; Bloomberg Sues
http://seekingalpha.com/article/110669-fed-won-t-disclose-who-got-the-2-trillion-bloomberg-sues
Author Eversar     Date February 5, 2009 09:22 Abuse this post Report Abuse
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Those quotes dont surprise me at all. I find it more disturbing on the part of government who is so hushed about the TARP funds. They have the attitude that it is the people responsibility to inquire about publicly spent money, instead of the governments job to inform people.

I read your article on leverage ETF's, an interesting and educational read. As i said above i would not use these leverage ETF's for investment purposes. I think they should be used as trading tools only.
Author JDShots     Date February 9, 2009 00:25 Abuse this post Report Abuse
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VIDEO: Want to trade Ultrashort/2x 3x funds? Don't hold them too long. Morningstar explains it all
http://link.brightcove.com/services/link/bcpid353537669/bctid995287400
Author JDShots     Date February 13, 2009 16:01 Abuse this post Report Abuse
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Cramer: Shorts Can't Break the Big Banks - TheStreet.com (02/13/09)
http://www.thestreet.com/story/10463994/1/cramer-shorts-cant-break-the-big-banks.html
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