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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (196541)	4/16/2009 9:45:26 AM
From: Perspective	Read Replies (1) \| Respond to of 306849

As I recall, you've traded the turns pretty nicely. Kudos to you! I hope your first bearish position in a while turns out well also. BC

To: Think4Yourself who wrote (196541)	4/16/2009 9:50:19 AM
From: ajtj99	Read Replies (3) \| Respond to of 306849

Be careful holding SRS for more than a few days. Last November IYR, which is what the SRS tracks, was at 22.42 while SRS was nearly at 275. At the March lows, IYR hit 20.52 while SRS only got to around 115. IYR dropped almost 10%, so if SRS tracked IYR at 2X inverse, it should have hit almost $330, right? Well, SRS dropped more than 45% below the levels hit in November. Look at SKF. Last summer the BKX was at above 70 and the SKF was at 90. The BKX took a 50% haircut since then, and the SKF is down 33%. If you hold SRS into the fall, it is likely it will be no higher than the highs it hits later this month.