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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Galirayo who wrote (212320)7/24/2009 4:02:23 PM
From: LTK007Read Replies (2) of 306849
 
From your link:<<The key word to look at, though, is "daily." Leveraged ETFs aren't designed to track their indices for long periods of time, so long-term holders of these securities can suffer losses even when their underlying indexes gain.>> Absolutely.
At the optimum best slam-up or slam-down, a 3x max hold would be about 14 trading days.
Example 3xultrashort BGZ(that tracks the Russell 1000 Large Caps index) in major slam down , returned plus 80% in 16 trading days(if timed right!), starting on 2/9/09, but if you didn't sell on 3/6/09, by 3/23/09 you were in the RED. And if you were holding LT from buy on 2/9/09, you are now over 50% in the red.
Direxion is very clear about the danger of these ETFS, a clearly state they are not for anything but shorterm action.
The ETFs have actually greater increased the danger for gut wrenching plunges and run ups.
i play this BS when i really really think "the stars are aligned for shorterm play, but it is only because i am playing the markets insanity.
The UNG ETF has become a MONSTER . Those that bought at 40 on LTBH have been crushed.

These vehicles are to be played WITH CARE and savvy and cynicism, or plain just don't touch them. Max

You have me going to look for a picture of a Pure Doji in Harami.:)
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