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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: Winfastorlose who wrote (191561)	7/7/2023 2:58:15 PM
From: da_cheif™	Read Replies (1) \| Respond to of 207322

fund managers know chit....they dont want j6p to make money otherwise ......

To: Winfastorlose who wrote (191561)	7/7/2023 3:08:39 PM
From: SGJ	Read Replies (2) \| Respond to of 207322

I have heard this said many times, but in the intermediate term I have never been able to calculate proof of it. For instance, since 10/22 $SOX has gained 78% from low to high while SOXL, for the period, has increased 333%. That's 9 mos. Possibly over much longer time frames more of this theoretical deterioration would manifest.

To: Winfastorlose who wrote (191561)	7/7/2023 5:09:27 PM
From: nicewatch	Read Replies (1) \| Respond to of 207322

Not exactly, at least as I understood it but confess to not reading the prospectuses of the 2x and 3x in many years. When I read them back then, they were reset daily. They were structured to achieve the 2x or the 3x for that particular day. The next trading day was a new game, so to speak, as was each day following. It's the daily reset that creates the slippage and decay unless you can well time a larger trend move. Moreover there is counterparty risk with the bank that the instrument settles with daily. It's really that bank that is using the derivatives and or some type of OTC swap(s) to arrive at the desired 2x or 3x outcome per day. So a company like Direxion might design a 2x or 3x product benchmarked against index xyz but then Direxion is also a client of whichever bank it settles with daily to achieve said daily goal of product. At least that's how it used to work I think? If I have time this weekend will reread the fine print.

To: Winfastorlose who wrote (191561)	7/7/2023 5:13:21 PM
From: #Breeze	3 Recommendations Recommended By D.Austin isopatch Winfastorlose Respond to of 207322

Yes you are correct. And even in a short term segment its not a 3x. I trade this one. I wave count the SOX, SOXX and SMH and keep an eye on them.

To: Winfastorlose who wrote (191561)	7/8/2023 10:57:14 AM
From: skipowwder	2 Recommendations Recommended By toccodolce Winfastorlose Read Replies (1) \| Respond to of 207322

Micheal Gayed won a dow award for a research paper he wrote regarding using 2x and 3x leverage for the S&P called leveraged for the long run. Year might have been 2016? Very informative highly recommend read.Can find for free with google search.

To: Winfastorlose who wrote (191561)	7/8/2023 4:20:54 PM
From: D.Austin	3 Recommendations Recommended By SGJ skipowwder Winfastorlose Read Replies (1) \| Respond to of 207322

carry a warning from their fund managers that they are for short term plays only. . I used to listen to a guy on the radio about the time triple Direxion and Proshares were introduced. He and most of his trading buddies bought em in the morning and sold at the close. But for the TQQQ it would have been best to just hold on. I did a half ass comparison on the QQQ and the TQQQ & SQQQ The TQQQ and the SQQQ have been around for about 162 months give or take a few days. The TQQQ has had 6 - 2 for1 splits and 1 - 3 for1 split - 2/1/2010 traded at a low of .4056. with lousy periotic dividends - - $100.00 bought about 246.56 shares - - today you end up with 23667.84 shares worth about $943,636.78 The SQQQ had 4 - 1 for4 reverse splits and 2 - 5 for1 reverse splits - 2/1/2010 traded at a high of $52,000.00. with lousy periotic dividends - - you would be more than broke if you stuck with this years ago. In the same 162 months the QQQ - 2/1/2010 closed at about $45.00 - the June 2023 close was $369.00 with increased quarterly dividends, what I found on BING - 2010 to the end of 2019, if you invested $10,000 in QQQ you would have had $51,465.00 at the end of 2019.