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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: NucTrader who wrote (53148)6/5/2000 10:08:00 PM
From: Casaubon  Respond to of 99985
 
take a look at what USPIX did from mid march to though april. Now look at what VWEHX did during that period.

This is from USPIX prospectus:

ProFunds UltraShort OTC Fund - Investor Shares seeks
investment results that correspond each day to twice of
the inverse of the performance of the NASDAQ 100
index.
The fund primarily engages in short selling, stock
index futures contracts, options on stock index futures
contracts, and options on securities and stock indexes. It
typically invests in securities traded on the
over-the-counter markets, and instruments with values
that are representative of such securities. The fund is
nondiversified. Investor Shares are for general investors;
Service Shares are for qualified investors.



To: NucTrader who wrote (53148)6/6/2000 6:11:00 AM
From: KyrosL  Respond to of 99985
 
NucTrader, USPIX uses options and futures to short NDX with a targeted leverage of 2 to 1. Since the leverage of options and futures is much higher than 2 to 1, the large T-bill position is used to bring the leverage down. This is standard capital preservation practice for futures trading. You always hold a large portion of your capital as treasury bills, or you don't last long.