Skf

No. Try for yourself overlaying the UYG/SKF or
URE/SRS or any other set of Long/Short leveraged ETFs. You will see that both sides of the trade trail off into losses.

 

Where did you copy/paste this from. I've read this somewhere.

 

It's from the link that I posted earlier in the thread.

 

Only when the market action is sideways and choppy. When it's directional the gains in the direction of the trend will exceed the other ETF's losses.

 

This thread is the blind leading the blind. If you want to make money with these, read the info straight from the source and do your own simulations.
http://www.proshares.com/funds/skf.html?Overview

 

I take that back.. Should read "Strong technical support at 100 until broken"

 

If things continue as they have and they reinstate the uptick rule, adjust mark to market, etc., SKF could easily grind down much lower.

 

Well thanks for your opinions guys, just glad I didn't put much into this trade. Could you elaborate how the mark to market will affect SKF?

 

"If you bought the SKF (went 2x short the financials) at the September 2008 XLF price high at $24, and prices in the XLF have now fallen to $11 per share, take a look at your SKF position that you bought about $100 per share. You were 100% correct in your assessment that the Financial Sector was going to fall hard - and it did. However, as of today, you’re only back to break-even after a 60% fall in the XLF.

This is one of the serious pitfalls of leveraged ETFs - the rise is great, but the fall is worse than most people expect or can tolerate. Among other reasons, this effect occurs due to the way percentages are reflected in price over time."

http://blog.afraidtotrade.com/

 

Exactly! "the rise is great, but the fall is worse" This is why I gave up cocaine!!!:eek: