Don’t misconstrue my hurried exit out of ERY. I do not like to hold 3x ETF’s for a long period of time, due to decay. Seeing the market rally, while ERY was up, prompted me to quickly exit. However, I still remain steadfast with my VXX position, now more than 21% of assets.
I bought GWW based upon a new accuracy tool in The PPT. It’s not available for public use yet, as it is still in BETA. However, I can tell you now, without equivocation, it is mathematical harmony at its finest. It takes the Godly, and often referred to, OVERSOLD/OVERBOUGHT indicators and tests the readings for accuracy. In other words, I am able to search our data base of 4,400 stocks+, plus ETF’s, for the most accurate OVERSOLD/OVERBOUGHT readings, using space alien magician coding, all provided by the good folks over at CAPSLOCK aka “Jeremy.”
Let me give an example:
No. | Ticker | Hybrid Oversold | Technical Oversold | Hybrid OS 3 Day – Avg Return | Hybrid OS 3 Day – % Times Up | Hybrid OS 3 Day – # Signals | Hybrid OS 5 Day – Avg Return | Hybrid OS 5 Day – % Times Up | Hybrid OS 5 Day – # Signals | Tech OS 3 Day – Avg Return | Tech OS 3 Day – % Times Up | Tech OS 3 Day – # Signals | Tech OS 5 Day – Avg Return | Tech OS 5 Day – % Times Up | Tech OS 5 Day – # Signals | Price |
1 | HRS | Yes | No | 1.82 | 100.00 | 2.00 | 3.35 | 100.00 | 2.00 | 44.85 | ||||||
2 | NFG | Yes | No | 1.29 | 66.67 | 3.00 | 4.93 | 100.00 | 3.00 | 47.57 | ||||||
3 | GWW | Yes | No | 3.07 | 100.00 | 3.00 | 5.34 | 100.00 | 3.00 | 104.11 | ||||||
4 | UN | Yes | No | -0.68 | 33.33 | 3.00 | 3.90 | 100.00 | 1.00 | 28.26 | ||||||
5 | EMR | Yes | No | 0.43 | 50.00 | 2.00 | 3.20 | 100.00 | 2.00 | 44.85 | ||||||
6 | SLT | Yes | No | -0.11 | 50.00 | 4.00 | 1.89 | 75.00 | 4.00 | 14.62 | ||||||
7 | DHR | Yes | No | 0.80 | 33.33 | 3.00 | 1.90 | 66.67 | 3.00 | 39.11 | ||||||
8 | ACH | Yes | No | 1.13 | 66.67 | 6.00 | 1.28 | 66.67 | 6.00 | 0.73 | 100.00 | 1.00 | 4.44 | 100.00 | 1.00 | 20.13 |
9 | SQM | Yes | No | -1.21 | 0.00 | 3.00 | 0.59 | 66.67 | 3.00 | 33.78 | ||||||
10 | DAC | Yes | No | -3.39 | 0.00 | 2.00 | -0.14 | 50.00 | 2.00 | 3.82 | ||||||
11 | X | Yes | No | -1.82 | 33.33 | 6.00 | -0.51 | 50.00 | 6.00 | 42.19 | ||||||
12 | BHI | Yes | No | -1.58 | 40.00 | 5.00 | -1.77 | 50.00 | 4.00 | 42.21 | ||||||
13 | PCP | Yes | No | -2.49 | 50.00 | 6.00 | -0.59 | 50.00 | 6.00 | 108.33 | ||||||
14 | QLGC | Yes | No | -1.92 | 50.00 | 6.00 | -0.58 | 50.00 | 6.00 | 17.71 | ||||||
15 | SORL | Yes | No | -1.81 | 50.00 | 2.00 | 0.49 | 50.00 | 2.00 | -7.00 | 0.00 | 2.00 | -2.89 | 0.00 | 2.00 | 9.05 |
16 | PTNR | Yes | No | 0.80 | 62.50 | 8.00 | 0.02 | 37.50 | 8.00 | 16.42 | ||||||
17 | WLT | Yes | No | -2.34 | 25.00 | 8.00 | -1.53 | 37.50 | 8.00 |
In summary, I am still waiting for a pullback and have a plethora of names on my “to-buy-list,” when the time is right. However, with regards to 3x ETF’s, do not hold them, as if they were ordinary short sales. They are far more sinister and more conducive to chapter 11 bankruptcy filings, than a portfolio filled with a fuckload of toxic CDO’s, literally.
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