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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (83012)	4/15/2007 10:41:41 AM
From: schzammm	Respond to of 206317

tom, I also use (Diamonds) DXD to round out my shorting the general market.

To: tom pope who wrote (83012)	4/15/2007 12:12:45 PM
From: Paul Kern	Read Replies (1) \| Respond to of 206317

Tom, I've used QID, SDS and their opposites, but, here I was responding to Jonh T. Clark who expressed an interest in DIG and DUG which usually trade less than 15k shares a day. I stay away from issues where there may not be a counterparty when I want to buy or sell.

To: tom pope who wrote (83012)	4/15/2007 1:04:43 PM
From: upanddown	Read Replies (3) \| Respond to of 206317

Tom/Paul Do you know if you can buy these ultrashort ETFs in a retirement account? As far as the lack of volume in the energy ETFs, I'm really don't think it is as important as low volume in an individual issue. If the spreads are reasonable, you should be able to get what you want at the ask. I also believe these are open-ended ETFs in which more units can be issued if the demand warrants it. The price has to stay reasonably close to the NAV of the underlying stocks. I wouldn't stay very long in the ultrashort since the longer you stay, the more expenses and cost of leverage could eat away at your return. I would think three weeks at the most. What I see is that the underlying index (DJUSEN) has a pattern of approx 10% declines maybe three times a year. The index has been rising steadily since these ETFs (DIG & DUG) were created. The ultralong DIG has stayed close to its objective of 2X. The index is riding above the upper BB and I believe it is due for a selloff sometime in the 2nd Q. We are still in the early part of the shoulder season. The only real bobble the underlying index has had since the ETFs were created was a decline of 6.32% from 2/26 to 3/5. The ultrashort DUG rose 12.97% during that same period. It is just a matter of time until this sector needs to pause and digest its gains. Catching that decline will be tricky but could be very lucrative with reasonable timing. I would only do it with a maximum of 2-3% of portfolio value and even that would have a tight stop. John