for DUST the STS would be 10.9, still very wide, there's only
been one
otherwise I don't really like in practice using the 3X ETF's for
it, UPRO isn't bad and probably one of the best managed 3X ETF's
that doesn't degrade that much, but things like DUST and many
others, they degrade so badly.
Remember - these 3X ETF's are designed to give 3X the leverage
of SPY for the day, they are rebalanced daily and not intended to
give the 3X performance for long periods of time. They are supposed
to be short term instruments and hedges, now long term swings
that's also why Steve and I rarely plot anything above a 60 min
or 2hr for the 3X ETF's, or at best a short term daily. I see
people here plotting 5 and 10 year charts of 3X ETF's and that
doesn't make any logical sense - you cannot trust trendlines on
those because of the degradation.
Matt can you share the
Posted by fredsaid on 7th of Feb 2023 at 11:34 am
Matt can you share the STS on DUST ? I found JDUS in the ETF list but not DUST.
for DUST the STS would
Posted by matt on 7th of Feb 2023 at 11:39 am
for DUST the STS would be 10.9, still very wide, there's only been one
otherwise I don't really like in practice using the 3X ETF's for it, UPRO isn't bad and probably one of the best managed 3X ETF's that doesn't degrade that much, but things like DUST and many others, they degrade so badly.
Remember - these 3X ETF's are designed to give 3X the leverage of SPY for the day, they are rebalanced daily and not intended to give the 3X performance for long periods of time. They are supposed to be short term instruments and hedges, now long term swings
that's also why Steve and I rarely plot anything above a 60 min or 2hr for the 3X ETF's, or at best a short term daily. I see people here plotting 5 and 10 year charts of 3X ETF's and that doesn't make any logical sense - you cannot trust trendlines on those because of the degradation.
TY makes sense. Could be
Posted by fredsaid on 7th of Feb 2023 at 11:58 am
TY makes sense. Could be why it didn't quite make it up to it's 50 DMA yesterday. I'm gonna place a stop below today's low.
On 2nd thought, just saw
Posted by fredsaid on 7th of Feb 2023 at 12:07 pm
On 2nd thought, just saw the chart on GLD from last night's newsletter and agree with date with the 50 day. If DUST dumps today, will add.