HOW ONE iTuliper IS INVESTED?

[goadam1]

Re: HOW ONE iTuliper IS INVESTED?

1 - yeah, looks that way. It looks like if the etf moves against you initially it only gets harder to get back to square one - timing component is tight.

2 - LOL

3 - yes, me too - not very itulipie but c'est la vie

4 - just wondering in your bond, cd exposure etc... aren't you finding it difficult to beat the liquidity and rate of online only 'high interest' at hsbc, ing etc... totally liquid and circa 1.48% ? or 1.96% at AIG?

I just shop around for CDs. In 2007 I locked in a bunch at 5.5% for two years. In fall, Corus and other shaky banks gave 5% on 9 months. I'm rolling those into some at Citi for 2.4% for 6 months. It's a pain in the ass but it's just where I want my money in this nonsense. Hearing about looming inflation but a short term deflation cycle is making me crazy. My cash is turning to poop but commodities and emerging markets look like a nasty bubble.

If there is a dip, then I will go after gold, some blue chips and more energy stocks (including alt energy). But so will everyone else.

[ST]

Re: HOW ONE iTuliper IS INVESTED?

I just shop around for CDs. In 2007 I locked in a bunch at 5.5% for two years. In fall, Corus and other shaky banks gave 5% on 9 months. I'm rolling those into some at Citi for 2.4% for 6 months. It's a pain in the ass but it's just where I want my money in this nonsense. Hearing about looming inflation but a short term deflation cycle is making me crazy. My cash is turning to poop but commodities and emerging markets look like a nasty bubble.

If there is a dip, then I will go after gold, some blue chips and more energy stocks (including alt energy). But so will everyone else.

Hmmm...yes sounds like a pain but worth it for the extra kick if you don't need full access at any time. At this point I want to be able to move money at an instant - like this fall/next spring at which time I will probably pick up some small north of the border plays that will give extraordinary gains in a scenario where players realize inflation is here.

[ASH]

Re: HOW ONE iTuliper IS INVESTED?

Today, I opened a larger speculative position against the S&P500.

... and stopped out after a 12% loss for that position. One thing is clear to me: if you are wrong on the timing of your entry with a leveraged ETF, it is better to cut your losses and re-enter later instead of holding on until you are right. I think I'll give this type of trade one more chance at a different entry point before I revert to my baseline speculative strategy of long-dated options against indexes.

[jpatter666]

Re: HOW ONE iTuliper IS INVESTED?

... and stopped out after a 12% loss for that position. One thing is clear to me: if you are wrong on the timing of your entry with a leveraged ETF, it is better to cut your losses and re-enter later instead of holding on until you are right. I think I'll give this type of trade one more chance at a different entry point before I revert to my baseline speculative strategy of long-dated options against indexes.

Yep, that's why I prefer options to the speculative ETFs. They seem to act the same (in fact, they *are* essentially the same since many of these ETFs use options). But with the options, even if I'm substantially down (which, unfortunately, for my first entries I am!), if things turn around I'm back in the black fast.

Not so, with these ETFs (and the more leveraged, 2X, 3X etc the worse) which because of the daily rebalancing tend to head down and stay there. They not only seem to need a fair amount of volatility, but they need it in the right direction.