Quote from ByLoSellHi:
Here's another question I just thought of:
I love the UltraDow.
Is there anything that allows us to buy 2x leverage shares of foreign ETFs such as ewt, ewj, ewy???
Quote from topdown:
I have been trading these ProShares for a while now, mostly holding as a hedge against the long stocks in my portfolio (or vis versa). The QID (ultra short) and QLD (ultra long) are fairly heavily traded, so they seem to track pretty close to 2X the actual Q's intra day, but the others need some more action. The DDM (ultra long Dow 30) and DXG (ultra short) do not track as closely, it appears most up/down adjustments are made overnight. (This is apparent in the frequent gaps in closing / opening prices). For example: I will notice the Dow is down .5% intraday, yet the DXG is only up .7%, where it "should" be a full 1% up if truly 2X.
The sector funds are brand new and still extremely thinly traded, so I have not yet even attempted trading them. I do agree these ETF's are great tools and the new funds should be very useful once they gain popularity. Another benefit is that you can use these to go short in an IRA which is typically not allowed.
Quote from ByLoSellHi:
S2000 & Topdown - thanks.
I am looking for vehicles that gives me leveraged index exposure to foreign markets - short and long - exactly what you described.
I appreciate the feedback.
Most of the proshares I checked out based on costaverageman's post seem to be in their infancy in terms of volume and liquidity, but it seems that they will be well worth the wait once they pick up.
A foolish thought crossed my mind earlier this week: I was going to go long on the UltraDow. But then I thought twice and decided it would probably be better to wait for the next correction to do that, seeing that we're at an all time high here, and I'm personally not in the bull conviction camp short term (I am long term).
Quote from $CostAverageMAN:
NEW YORK, Dec 8 (Reuters) - Catalina Marketing Corp. (POS.N: Quote, Profile , Research) said on Friday that it hired investment bank Goldman Sachs (GS.N: Quote, Profile , Research) as an advisor after the company received takeover interest from a private equity firm.
Reuters earlier reported on Friday, citing sources familiar with the process, that several private equity firms were pursuing the company, with Goldman running the process. Bids were expected to be around $30 per share.
Catalina shares jumped $4.02, or 16.6 percent, to $28.25 before being halted on the New York Stock Exchange Friday afternoon. The shares rose another 86 cents after trading resumed, closing 20.14 percent higher at $29.11. Prior to the Reuters report, the company had a market capitalization of $1.1 billion.
St. Petersburg, Florida-based Catalina provides marketing services to companies based on the information from its electronic network collecting information from the checkout scanners of some 21,000 retail centers in the United States, according to Hoovers.
Catalina's Health Resource segment provides targeted marketing materials to consumers through its pharmacy network.
Catalina said on Friday that it hired Goldman after it received unsolicited takeover interest from a private equity firm. It did not name the firm. Continued...
© Reuters 2007. All Rights Reserved.
I wonder who bought them....and even better at what price.....
Has anyone done a formal correlation between these leveraged ETF's and the index they are attempting to mimic? Just eyeballing charts they dont look like they are tracking very well (gains are often less then 2X and losses are often more then 2X)Quote from topdown:
I have been trading these ProShares for a while now, mostly holding as a hedge against the long stocks in my portfolio (or vis versa). The QID (ultra short) and QLD (ultra long) are fairly heavily traded, so they seem to track pretty close to 2X the actual Q's intra day, but the others need some more action. The DDM (ultra long Dow 30) and DXG (ultra short) do not track as closely, it appears most up/down adjustments are made overnight. (This is apparent in the frequent gaps in closing / opening prices). For example: I will notice the Dow is down .5% intraday, yet the DXG is only up .7%, where it "should" be a full 1% up if truly 2X.
Quote from GTS:
Has anyone done a formal correlation between these leveraged ETF's and the index they are attempting to mimic? Just eyeballing charts they dont look like they are tracking very well (gains are often less then 2X and losses are often more then 2X)
Not that I would expect a free lunch of 2X leverage without any cost but I'm wondering how close they really do track.
If they were able to track closely these would be great vehicles for long-term buy and hold investors to replace index mutual funds, e.g. if the you expect the market to average X over the twenty years here is an easy way to get 2X returns.
I don't know if this link will work but take a look for yourself:
http://tinyurl.com/2pz3ss
QQQQ ended up around 18% for the past year but QLD is only up 25% not 36%. Is there a difference in how dividends are paid out that can explain this?