QID vs QLD ? Not inverse

Discussion in 'Trading' started by BornToTrade, Aug 17, 2007.

  1. I haven't really ever paid much attention to this but I thought that the QID and the QLD were supposed to move inversely to each other and 2x the QQQQ

    At the moment, (10:14am)

    QQQQ +1.32%
    QID -2.12%
    QLD +2.76%

    I can understand them not being exactly 2x but the QID and the QLD seem out of whack.

    SDS -3.29%
    SSO +3.34%

    They seem pretty close.

    Am I missing something or will it settle down as the day goes by?
  2. The S&P has better liquidity. The S&P etf's are more tightly correlated. The QQQ-funds seem less liquid and might have volume-imbalances that could bring about arbitrage opportunities. Eventually, they should balance out.
  3. I've seen the same thing on sds/sso.
    While they are advertised to track highly at 2X and they correlate over the long run, there have been wide discrepancies
    between the two, as well as the index they track, on many days.

    Pretty irritating if you ask me. Keep analyzing the data, you'll also notice wide discrepancies in overnight gaps. Oddly, the sso/sds have a higher frequency of gapping than the actual index they represent. Lastly, notice the sso slippage jumps in 10c spreads while the market
    changes direction.

    Methinks many daytraders are getting bamboozled by some of these Ultra ETF inconsistencies. A dime here and there, it adds up.
  4. zdreg


    if you think you are getting "bam.." then arbitrage the difference away and make some money.