RM's occasional market calls...
- Thread starter Rearden Metal
- Start date
Although I am no where near close to making the kind of predictions with the same level of accuracy Mr RM has, my prediction would be that in response to your question he would most likely ask you to read following thread;
http://www.elitetrader.com/et/index...ion-between-p-l-and-use-of-stop-orders.54604/
In particular the following post should be reviewed for the answer to your question;
http://www.elitetrader.com/et/index...d-use-of-stop-orders.54604/page-2#post-841186
Whilst trading in RM style you may find yourself being 'POUNDED LIKE A RENTED GERBIL' but thats all part of the fun
. Please see quote below to explain this phrase.http://www.urbandictionary.com/define.php?term=Pounded+like+a+rented+gerbil
Hope this helps and apologies to Mr RM for acting like your secretary
EDIT: Just realised JTrades beat me to it but made the decision to leave it up due to the added comical value
Current Oct. CL price is $44.46. Time to cover half right here.
Covering the rest (Oct. CL) here at $44.64.
Nice trade. Great timing.
It is almost painful watching the media struggle to put together what exactly occurred and why in the most mysterious mass shooting in recent memory, so let me step in to try explaining what happened: Peace loving Muslim Syed Farook didn't always intend to engage in terrorism. In fact he built himself a legit respectable career dealing with county officials in San Bernadino. His Islam infection lay dormant for years, until one day Syed felt insulted and humiliated by something his legit professional peers did to him- some perceived slight or insult that a normal civilized non-Islamic person could easily shake off. So Syed did what comes naturally to any Arab Muslim savage (I'm from Israel, and talking like that is still cool where I come from, besides being entirely true). So Syed the peace loving Muslim with the legit career rounded up his posse of fellow Muslims, who were easily persuaded to help out with a heroic operation for the glory of Allah. That's the Muslim plan B for many of them- If your legit respectable career doesn't work out because you felt insulted, glorious martyrdom for Allah is the fallback. Register the time and day I posted this, and let's see how close I get...
Short DGAZ right here, right now. Current price: $16.93. Just be prepared to hold for weeks if necessary, in addition to possibility of doubling or tripling down if it moves higher. I'd expect DGAZ to easily drop below $14 (at least) on the first real cold spell of the winter. Nat gas can't possibly stay down here forever, and shorting a leveraged bear ETF gives you the added advantage of ETF decay working in your favor.
It has been unusually warm this winter. And there hasn't been any monster storms or snow. The oil producers are still pumping as much as possible.
But I like your thinking...if everything is going against oil and ng, it doesn't take much to move the price in a triple ETF.
How easy is it to borrow short ETF from a brokerage? And what is cost to hold the position? I would think there is a catch since there is decay, do they make it expensive to hold or everyone would just short these ETFs on commodities.
But I like your thinking...if everything is going against oil and ng, it doesn't take much to move the price in a triple ETF.
How easy is it to borrow short ETF from a brokerage? And what is cost to hold the position? I would think there is a catch since there is decay, do they make it expensive to hold or everyone would just short these ETFs on commodities.
If you have an IB account, shorting hard to borrow ETF's like DGAZ and UVXY are available most days without having to go through any kind of special request process, and I don't think they charge any additional fees at all.
Nowadays, popular and hard to borrow stocks are charged a high interest rate. Thats probably what he was referring to.