I have been waiting for a pull back to get into some longs. I trust it will happen soon but the market can stay overbought for longer than we like.

Isn't it funny how the market pushed above 8000 for the week. All in the last few minutes.  Hmmmm.

This is an update on their position on leveraged ETF's. It sounds like they are going to allow more "sophisticated" investors to purchase these in their accounts. They will need to meet certain financial requirements and be required to file a new "Investor Qualification Agreement" in order to purchase them. I am guessing they got some blowback on their position.

What it is basically doing is not allowing any further purchases into client portfolio's. I see nothing that states they must be sold if they have holdings. Just review the information with client to make sure they are appropriate. They, as mentioned earlier, point to differences in the actual performance of the etf and 2x or 3x the perfomance of the underlying index. They can be quite different over longer periods of time. I guess this is understandable since the etfs use options, etc to try to get the results they seek. It would be impossible to exactly double or triple the index with volatility, time decay, etc. that impact the value of the options and underlying etf perfomance. Since we as advisors are to take a long term view of our clients portfolio, they have determined they are not acceptable.

http://news.morningstar.com/articlenet/article.aspx?id=271892&pgid=etfarticle

http://www.morningstar.com/cover/videocenter.html?bctid=9952874001&lineup=etfs  Video

The concept in the video is one I share with my clients. If you lose 20%, you need to make 25% to get back to even.

I am a financial advisor for Raymond James and can confirm they are no longer accepting trades for leveraged etf's. The biggest problem is they do not correlate over longer periods of time to what you would expect to be the results given 2x or 3x moves by the underlying index and sometime by a good margin.

Matt/Steve

I know you mentioned previously that a new look to the website is coming. I was just wondering how that was coming along.

I don't think that we have ever seen a new bull market take off without pe's going under double digits. And with mean reversion we will probably get to the 7 range. Also, if you look at corporate earnings right now, I would guess the S&P may have a negative number if not close so what does that do to pe calculations. Even scarier stuff.

Boy, if we don't get a getty up in the market pretty soon I am not feeling good that this uptrend is going to continue and it could break down, IMHO.

Is the 9/39 still a valid trigger? Looks like it is about to happen.

Look back to late November on the SSO. We are basically in a trading range from appox 21 to 28 give or take a few pennies. Thus, we are approaching support here so watch it.

Steve, the new link worked for me. Thanks.

Ameritrade would not let me short SRS, anyone else try today?

Bought some puts on JPM at 2.35 and just sold at 3.05. It is near support now. I feel good.

We are at or near the 20 and 50 sma's on a daily chart that may serve as support.

I use Strategy Desk from TDAmeritrade and you can use any time frame for the charts that you wish. They will give you some defaults but all you need to do is type the time frame you want in the appropriate field.

The Bollinger Bands on the 60" chart are pinched pretty tight.

Check your inbox, I sent you a private email with a link.

Scalped 1.50 on the initial cross.