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

To: Bill Wexler who wrote (4680)	12/17/2008 4:52:24 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

Thanks, thats good news. Once in a while a sector may pull ahead in the current bear. Today´s machine driven IYR prop made me nuts and it seemed never to stop. In Summer there was a large prop in airliners; then a smaller one in insurances. This one might be fuelled by the super easy money policy and as an alternative asset to 30-y treasuries (much like the shipbuilder rallye is driven by the recent baltic bounce). THeres another thing: I remember Bill Wexler, Edition Spring 2003 "This market shall not be shorted" which was likewise driven by super low (then 1%) interest rates and 100% correct because it would rallye for four full years. What about now? Doesn´t money try to find a home?

To: Bill Wexler who wrote (4680)	12/18/2008 8:36:06 AM
From: Kevin Podsiadlik	Respond to of 6370

Appreciate the research, Bill, but I need to point out that that doesn't really contradict my observations. I never intended to suggest any underhandedness on the part of ProShares. And I do agree that SRS, on a minute-by-minute basis, does a good job of mirroring and amplifying the moves of the IYR. The problem is, there's a "slippage" factor in there somewhere that becomes quite obvious over time that is proving deleterious to SRS's performance over the long, and now increasingly short, term. Yes, when IYR plunges, SRS will benefit. The problem is, you then have to be quick to take profits, for even a partial rebound may be enough to wipe out SRS's gains. Just, as I often say at these moments, be careful.