Hello traders, I've heard news about Direxion's application to the SEC for 40 new funds intended to return 3X on their underlying indeces on a monthly basis, as an addition and alternative to the daily-tracking ones they currently offer. Does anyone know if and when they'll be available? I can't seem to find a date on when to look for them.
I don't have a particular link to share about the upcoming Direxion monthlies, but a google search yields numerous references to the SEC filing for the new funds. Regarding shorting the funds against each other, one might try shorting the daily, going long the monthly. That way, one could capitalize off the decay in the daily, while being hedged in the event of a strong trend. Can't wait till these funds come out!
SEC filing of 26 February 2009 here: http://idea.sec.gov/Archives/edgar/data/1389426/000089843209000245/rafferty-40app.htm Index Universe article of 25 March 2009 here: http://www.indexuniverse.com/sectio...-for-41-new-etfs-tied-to-monthly-returns.html
Forget about shorting IMO. Just buy the dips and sell the high's of each. They'll hedge each other, just remember to hold positions for only a day or 3 and you should be alright. They both go up and down, but if you split your money between them and get in when the price seems right, you even if you loose some money today say with FAS, FAZ goes up and you can sell. FAS will recover and perhaps exceed your price, then sell FAZ and buy your half of FAS again and play the see saw, just do it with half you money in each instead of banking your whol basket on one.
Steven, Although I can't answer your question, it's highly likely that the two web sites listed below will post stories about Direxion monthlies once they are available. http://www.indexuniverse.com/index.php http://etfdailynews.com/blog/