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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?


To: RockyBalboa who wrote (4649)12/13/2008 10:46:02 AM
From: Kevin Podsiadlik  Read Replies (1) | Respond to of 6370
 
I think it might have to do with them having too much money to run on a given index. If you look at ProShares major index trackers like QID and SDS their performance is at least in the ballpark.

But SKF and SRS represent sectors "everybody" wants to get short, and they make doing so entirely accessible, even in an IRA account. Given the surge of money they've surely gotten to handle, in combination with the shrinkage of those indexes, you end up in a situation where they're driving the very indexes they're supposed to be tracking. And that's never what you want.