I thought about giving this post the title of “Don’t Think; Buy SKF.” My superstitions got the better of me.
The facts are that this setup has appeared 15 times over the life of (SKF: 20.41 +0.25%) . Had it been bought at the next market open following the setup, 12 of the trades would have been winners, [...]
I am going to put to rest these issues surrounding whether double inverse ETFs accurately track the underlying indexes.
Editor’s Note: Thanks to Ottnot, I have found that I have erred. I will strike through the errors, explain them, and re-post the corrected spreadsheet.
Here are the facts:
1. If the underlying index has a daily percentage gain, the double [...]
Following the footsteps of last week’s post, WTF is Wrong with Leveraged ETFs, I decided to take a look at whether leveraged ETFs can still perform as effective hedges. Also, I am continuing to explore if there are any anomalies to exploit when trading leveraged ETFs.
In my opinion, an effective hedge should not significantly limit possible profits but should significantly limit downside [...]
