By now, I think most know about the UltraShort indice ETF's - QID SDS DXD and MZZ. Popularity in that order.
Two more have just recently been added;
SDD Small Cap 600
TWM Russell 2000
Also now sector UltraShorts have also been added;
SMN basic materials
SZK Consumer goods
SCC consumer services
SKF financials
RXD healthcare
SIJ industrials
SRS Real estate
SSG Semiconductors
DUG oil and gas
REW technology
SDP Utilities
All these new ones still have very low trading volume/interest so far, but give them a few weeks/months. QID, SDS, DXD and MZZ didn't have much interest to start with either. QID is still by far the most popular. My portfolio is VERY heavily into QID.
Whether you use them to hedge long postions temporarily or to profit from a bear market or correction, these instruments are the neatest thing since sliced bread.
For those haven't heard of these ETF's, they work like taking a short position, but you would actually buy the ETF. For that reason you can be "short" even in a non-taxable account, IRA, without margin, etc. The UltraShorts are leveraged 200% and should move about twice inversely to that of the corresponding indice/sector. They accomplish this leverage through use of a combination of options and futures.
For those not wishing to be quite as aggressive, Proshares also has a few short ETF's that are not leveraged and should move about inversely equal to the underlying indices.
Also, there is no redemption fee/penalty on any of these ETF's to hinder any ST trading in them. So take advantage of em when the time is right (now?)
Quote from: BigSully1 on February 11, 2007, 07:38:39 PM
By now, I think most know about the UltraShort indice ETF's - QID SDS DXD and MZZ. Popularity in that order.
Two more have just recently been added;
SDD Small Cap 600
TWM Russell 2000
Also now sector UltraShorts have also been added;
SMN basic materials
SZK Consumer goods
SCC consumer services
SKF financials
RXD healthcare
SIJ industrials
SRS Real estate
SSG Semiconductors
DUG oil and gas
REW technology
SDP Utilities
All these new ones still have very low trading volume/interest so far, but give them a few weeks/months. QID, SDS, DXD and MZZ didn't have much interest to start with either. QID is still by far the most popular. My portfolio is VERY heavily into QID.
Whether you use them to hedge long postions temporarily or to profit from a bear market or correction, these instruments are the neatest thing since sliced bread.
For those haven't heard of these ETF's, they work like taking a short position, but you would actually buy the ETF. For that reason you can be "short" even in a non-taxable account, IRA, without margin, etc. The UltraShorts are leveraged 200% and should move about twice inversely to that of the corresponding indice/sector. They accomplish this leverage through use of a combination of options and futures.
For those not wishing to be quite as aggressive, Proshares also has a few short ETF's that are not leveraged and should move about inversely equal to the underlying indices.
Also, there is no redemption fee/penalty on any of these ETF's to hinder any ST trading in them. So take advantage of em when the time is right (now?)
I am loading up some QID tomorrow, nice candle and record volume Friday. Good luck to us :)
SRS UltraShort new (Real Estate)
Volume has picked up last couple of days.
QID made some money today. Noticed a nice pattern on a possible inverse H&S breakout as per this chart:
Nice find on the SRS... I may trade that soon (Since I am very bearish on housing.)
Interesting; SMN-basic materials was up the most today 10%, followed closely by TWM 9.25%.
Almost my entire IRA is in TWM.
Muchof the rest of my port is in QID and SDS and DXD. Expect much more volatility in the days to come.
per QID, will 1740 to 1750 area provide strong support for $NDX? I'm no chartist, but it looks like it should. Wouldn't be good for longs if it breaks.
http://stockcharts.com/h-sc/ui?s=$NDX&p=D&b=5&g=0&id=p90571066858
http://stockcharts.com/h-sc/ui?s=$NDX&p=W&b=5&g=0&id=p12363894516
Thats really weird. I don't know why those links bring up $INDU. Oh well, you guys can chart $NDX yourself