Posted by junkmaylbox on 28th of Jan 2009 at 08:10 pm
From that analysis also follows that one need not enter the ETF
before the underlying index completed the 50% of its move down.
Then the level under-performance due to inverse compounding would
be exactly balanced by the sit-out time of the trader. In our case
of the projected move from 812 to 900, the trader should need to
stay away from the ultra shorts below 855. Hence today the entry at
865 or higher was a good trade. I still reckon that 50 on SRS was a
good entry. I started scaling in at 60, I need to reduce my cost
basis on that position by trading in and out of the stock, if I
can.
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From that analysis also follows
ALL SKF AND SRS SWING TRADERS SHOULD READ THIS
Posted by junkmaylbox on 28th of Jan 2009 at 08:10 pm
From that analysis also follows that one need not enter the ETF before the underlying index completed the 50% of its move down. Then the level under-performance due to inverse compounding would be exactly balanced by the sit-out time of the trader. In our case of the projected move from 812 to 900, the trader should need to stay away from the ultra shorts below 855. Hence today the entry at 865 or higher was a good trade. I still reckon that 50 on SRS was a good entry. I started scaling in at 60, I need to reduce my cost basis on that position by trading in and out of the stock, if I can.