Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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To: rrufff who wrote (3224)	2/26/2009 8:11:44 AM
From: rrufff	of 5034

Many of us have been speaking out against the artificial pressure created by leveraged and double and triple move based ETF's (both on the long and the short side). These ETF's underperform over time as they are intended to be adjusted based on daily performance. Much has been written as to the math and how this happens. For example, even if you had predicted the fall in oil, you'd be underperforming if you bought the double short oil ETF's. Take a look also at FXP which is double short one of the Chinese markets. It's a great trading play and I have done well writing options on it, but it has not been an effective play for what it is generally believed to be, and that is to make money on the move down off the Chinese bubble. So why do they exist? Cramer and others have recently hopped on to the bandwagon. They are daily trading vehicles, but the real reason is to create incredible leverage. Relatively small amounts of funds can control large movements in baskets of stocks. There are even some moronic defenders of hedge funds and naked shorting that are starting to agree, but the evidence has to hit them over the head. Message 25442038

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