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Not sure if someone touched upon it but did you hold the ETF overnight at any time? Inverse ETFs are not supposed to be held from one trading day to another.
If you live in Detroit, why would you be spooked by the Chinese government? Lol
Not sure if someone touched upon it but did you hold the ETF overnight at any time? Inverse ETFs are not supposed to be held from one trading day to another.
If you live in Detroit, why would you be spooked by the Chinese government? Lol
It's not the inverse funds that are an issue so much but rather the levered funds which rebalance daily
I was thinking about this ETF during a long drive and I realized something and this morning after I got up I checked it out and sure enough. This ETF is trying to mimic an index that isnt even trading while the ETF itself is trading. So if you look at say a 5 day chart then you will notice its mostly flat during trading hours and only makes gains/losses from overnight (normal China trading hours) movement and the daily rebalancing. I would be very careful with this ETF because firstly its a 3x and secondly because I am not real sure I understand exactly how they are getting their gains. With such high volatility in the underlying index and the requirement to hold this overnight I wouldn't dare touch this ETF.
Perhaps there is a market its trading on thats open during Chinese hours?
I would be interested to know more about this ETF if anyone has any insight, purely from a curiosity standpoint.
I was thinking about this ETF during a long drive and I realized something and this morning after I got up I checked it out and sure enough. This ETF is trying to mimic an index that isnt even trading while the ETF itself is trading. So if you look at say a 5 day chart then you will notice its mostly flat during trading hours and only makes gains/losses from overnight (normal China trading hours) movement and the daily rebalancing. I would be very careful with this ETF because firstly its a 3x and secondly because I am not real sure I understand exactly how they are getting their gains. With such high volatility in the underlying index and the requirement to hold this overnight I wouldn't dare touch this ETF.
Perhaps there is a market its trading on thats open during Chinese hours?
I would be interested to know more about this ETF if anyone has any insight, purely from a curiosity standpoint.
You can read up here and call them if you have more questions
You would have had to time the bottom fairly closely to be up 30%. With your panic selling for not understanding the news and your lack of understanding of how this ETF works I would question your stated return. It's either total luck or bs
Hardly luck. Chinese stock market bubble was as obvious as they come.
This ETF was bound to reflect the magnitude of the correction.
Leveraged ETF's have time decay because of the derivatives used. As a result, there are traders who only short the ETF's by shorting the bull ETF to get short and shorting the bear ETF to get long.
Hardly luck. Chinese stock market bubble was as obvious as they come.
This ETF was bound to reflect the magnitude of the correction.
No given the timeframe and return you posted it's either bs or luck, not that your call was luck but rather the total return/timing the bottom or top if you will
Sold today around $103. That's probably a 75% gain at least.
Will jump in again, as this is my 2nd go round with shorting China in the past month. Last time I made out with an easy 25% gain.
Holding these things overnight is scary as hell, but necessary at times to see full returns.
I appreciate everyone's input, as this has been a fun learning opportunity.
Quote:
Originally Posted by Lowexpectations
No given the timeframe and return you posted it's either bs or luck, not that your call was luck but rather the total return/timing the bottom or top if you will
Sure.
As was my recent call on the VIX several weeks ago... Correct? And my similarly timed call for dumping stocks?
Bought a relatively small amount today at 89 something. I will probably loose a bit for awhile, as the easy money has been made.
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