Today I added FXP at 23.00.
And I bought some FAZ, some SRS, and some QID in my wife's retirement account - at 16.91, 50.69, and 43.35 respectively. Unfortunately, this is her *small* retirement account. The big one, through her employer, only allows mutual fund purchases.
I've got a post on retirement account trading on the agenda.
6 comments:
Wowsers... you are bear to the core huh?
I have similar large positions in FAZ, SRS, & FXP and added heavily to them today. Lets hope were vindicated in the near future.
Do you have any alternative hedging strategies in case the market proves your thesis otherwise?
Considering your a math geek I'm surprised how many daily compounding positions you've been putting on. The time decay in a sideways or bullish market will kill us. Yet I keep going back to the water hoping to gain a good 50% like the last few times. Maybe the market has conditioned us well and now we will reap max pain.
I have no alternative hedging strategies at the moment. Though I do own TBT that could theoretically rise a bunch should the financial markets firm up (and then that rise will choke off the recovery!).
Time decay in a sideways market will not by itself kill the levered ETFs. It has to be BIG daily back-and-forth fluctations; which is unfortunately what we've had....which I didn't, and never would have predicted.
I think I'm less afraid of *decay* because I cut my teeth trading options. Negative theta is something I have been accustomed to for my entire 13.25 years of trading.
C-Nut,
Did you catch this article from Rueters? The big banks are gaming the system and considering buying the toxic mortgages from each other under the new treasury program and passing most of the risk off to the taxpayers.
http://uk.reuters.com/article/gc06/idUKTRE5320OK20090403
Kfell
But the entire scheme, from the get-go, has been a way for pols to recapitalize the banks at the taxpayers' expense, right?
Yes, the current manifestation is pretty egregious. Maybe that's why the bank stocks have been so perky?
There's still the question of execution. And there's still the question of what happens to Treasuries. I can't imagine that long term Treasuries don't nosedive before year-end.
The Treasury bubble remains a loaded gun pointed at the head of our Ponzi/fiat regime.
We can only hope that politicians worry about an public uproar (like the bonuses to AIG) and crank legislation thru that will somehow handcuff this move at least before they figure out the consequences to the market. No wonder the banks have been going up despite all this negative news. It is obvious the banks are two steps ahead of our politicians.
http://zerohedge.blogspot.com/2009/03/exclusive-aig-was-responsible-for-banks.html
AIG is taking all the loses to protect the rest of the banks...Farfetched? I don't know what to believe anymore.I also read PBHG increased the risk of its portfolio right before the bottom fell out last yr...Is our government doing an excellent job of pulling the wool over our eyes?
http://www.financialarmageddon.com/2009/03/rolling-snake-eyes.html
Kfell
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