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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (14932)	3/4/2011 11:10:32 AM
From: ayn rand	1 Recommendation Read Replies (1) \| Respond to of 223300

regulated by SEC?, lol! yeah, right. you can rest assured with the SEC, FDA and FDIC doing their respective alleged jobs and covering your back. no worries!

To: GROUND ZERO™ who wrote (14932)	3/4/2011 11:50:11 AM
From: giddy guru	Read Replies (1) \| Respond to of 223300

Straight index ETFs like DIA, SPY, the slippage is insignificant. For ETFs which are basket of stocks, small manipulation is possible, Where NAV and premium/discount comes into play. For leveraged ETFs, the leverage is derived partly through options and/or futures. So the slippage can be lot and usually unpredictable. GLD is physically backed and so GLD follows gold price closely. For USO, the oil ETF there is no substantial physical backing. That is why USO opened at $75 when crude was at $75, 3 years back. Now USO is only 40% of Crude price. For AGQ to make twice the intraday move, no one knows what options or futures they play. So to correlate AGQ price with SLV is hard, in the long run. Because of these leverage instruments, theoretically they can price AGQ at infinity, or zero or anything in between. When you deal with paper instruments, that's the risk one has to take. /giddy