Monday, December 15, 2008

Inverse ETFs are Impressive

On the 9th I took my money-managed funds and purchased 447 shares of SRS @ 80.45 and purchased 339 shares of SKF @ 106.25. For simplification of terms, let's start calling my fortunate friend "Pete". What a run. Ever notice the peak in trading the first 15 minutes of the market's open?

After having had an excellent run with Pete's money and not wanting to be long in an inverse ETF over the weekend, I sold quickly on Friday fetching 104.15 for SRS, and 140.53 for SKF. That's a gain of 29.46% and 32.26% respectively and I owed it all to Stock Assault 2.0. I actually would have never traded those otherwise.

Pete started me out with $25,000 and as of this morning, the 15th, I have turned that into $58,163.00, give or take, in only 10 Trading Days. that's a profit of 132% in 10 days . Project that over a year, and you can see that there is some real money to be made.

Please remember this tip for inverse ETF's : it is not wise to carry a long position over a weekend. I close every position in a long inverse EFT the same week I open it. Trust me on this one.

Have a good one. I know Pete will.
- Roger

1 comment:

  1. Roger,

    Couldn't agree more. I actually skip the 1st hour of trading as the prices tend to level themselves out and I can get a better limit price.

    I was pleased to see Stock Assault pick up those ETFs and I ended up buying them as well.

    I ended up selling them for roughly the same gains. I noticed today SA gave me the signal to sell so I am glad to see these Reverse ETFs are signaled to buy and sell just like an equity.

    SA is becoming a too good to be true type of tool and yet.. it is true. I've got the numbers as well to prove it.

    I actually end up getting up really early now in anticipation of an SMS alert!

    Thanks for the update Roger. I thought we'd lost you. Glad to see you posting.