Hi Bill; I think you have the picture, it fills up a lot of time.
Not so much java any more, I had to cut back on taht.
I would not likely be in it so much but for the fact I can't stay
on my feet for very long , and it takes my mind off the arthritis.
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Did I mention the USPIX & UOPIX funds, the first one shorts the
NDX 2x , and the second one longs it 2x. It's tricky but if
I can get in the short fund on an up day or the long one on a
down day , ( after a gap ). and don't over do it..then I can
trade ( hedge ) with the QQQ 2x the fund $ to slip out with a profit.
The fund orders need to be in by 2pm , & as you know the market
can often change from then to close. At any rate I get the closing
Nav short or long. However playing the qqq boils down to
circumvent the closing Nav of the Fund, by opening & closing an equal but opposite position in the qqq for the balance of the day.
An example is , say the NDX is going up after a gap
and I feel it's about to roll over so I put in a buy on the
USPIX , ( trying to match dollar amount close to what 100 or
200 qqq would be) , then watch the QQQ to offset my fund bet.
Saying it overly simple so one may understand the idea,
If I'm going short at the close, via the fund,
All I need the next day is a good DIP below that close to lock her
in , as I can go long 2x the qqq any time
( hence closing the short by proxy ) then place the sell order
for the fund and also close my long right at the close.
There are several ways to skin this cat and I may not explain
them very good, but it boils down to circumventing the closing
Nav of the Fund, by opening & closing an equal position in the qqq.
The rhyme to the madness is in the leverage..
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My account sees a position in the USPIX as an investment,
while it's really a 2x short. So that is considered equity,
in my margin account. ( and I don't need to worry
with a margin call in respect to it
even though with it I'm on margin "by proxy" )
This is also true in the UOPIX , I'm long 2x but don't
have to worry with a margin call.
THe short fund also winds up letting me short even more
than I could with out it. On the other hand it also lets me
long the qqq using margin to ( hedge the fund ) if the NDX changes
direction. The basic trick is when I'm ready to exit the
Fund and I place the order, I know I will get the closing
Nav, so I also close whatever QQQ position I have taken
right before the close on taht day.
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Well the way I explained it is about as clear as mud, and no one
should jump to conclusions and start betting this way without
giving it a lot of thought and being sure they have it figured
out in their own mind, it's not as simple as I have stated it,
also I left out a lot of angles and details
that I don't feel I have the talent to paint.
This picture is just to give a general idea, but not to be
used as an actual map.
Jim
PS it can be done but without leverage on the
S&P 500, using the spy against an index fund
to lock in your closing ( effective NAV ) by
proxy.
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