Recovery My Arse

My shoulders hurt from laughing so much with Pete Domenick and Matt Taibbi yesterday evening on the Sirius/XM POTUS Channel. My head a little bit too. But I was able to read my charts this morning nice and clear. Oh, how is the ticker SRS doing when I told you to buy it at 21.79 yesterday? Says on my screen 23.15. As Rosemary Clooney, used to say, "that'sah nice!" Today we're doing some more.

On March 30, the charts sent out a signal to sell UltraShort S&P 500 ProShares (ticker: SDS) at around $80. Today it trades around $60. Well $59.94 to be exact 'cause I just bought some. This stock represents "the daily investment results of 2 times the opposite of the daily performance of the S&P 500 Index". Key word being opposite. As in, if the market goes down, we win twice as much. How do you like them apples? To say I don't like things right now might be an understatement. BUY SDS.

Now I'm going in to take a nap. Good luck.

Comments

[eric]

We hear you on the directionality and time issue as well "Me". We put these on when we are getting for a short sharp directional move. The risk is expense and the simple arithmetic that makes these underperform if the mkt chops around.

You want a short time horizon and a view we are going down hard and relatively straight. That is our view.

Your points are very valid though and thanks for pointing them out.

[Richie]

Me,
I recommend the double short funds, and anything else for that matter, as a way of making money. The charts are incredible on these things and they are going to work out in our favor. Is it the most economical way to do this? Probably not. But do we get a huge bang for our buck when it works? Yes. Do our viewers have a tough time shorting stocks like SPY? Probably. We won't stay long in these EFTs but it aint so bad when things are going south. Also, I think there is so much press as to how filthy some of these products are, that there will be changes coming soon. Love to hear a suggestion as to how to take advantage of this market about to implode that is just as simple for our viewers. For now, I'm being "a dope" and paying all the expenses but watching my stock go up.

[me]

You guys are smart guys, so stop recommending these double short funds. The price of these will always trend downwards over time unless the market goes in one direction consistently. If the underlying goes up 10% and then down 10%, you're worse off than you started - if it's down 10% and then up 10% - same thing. That's why all of these double short and double long funds are all WAY below their highs.