Stock Market Update For Trading Week Of September 12 2011

[whatisstockexchange]

thanks

[ArcturusVaughn]

I did some further research about ETN's this Sunday and played TVIX today versus the ETF: EPV. It was the tax rates on ETN’s vs. ETF’s that appealed to me in addition to no commission fees when trading ETN's. Overall I had a great day on the markets today with my first day trade betting on the bears. You rule StockTradingMaster.

[StockTradingMaster]

@ArcturusVaughn Congratulations man and thank you for the kind words.

[ZoZem]

When the market is tanking TVIX is a little day trade-- jump in jump out for a quick low risk scalp. Lance-- you're the one who got me to look at this.

PS: When the market tanks-- what are people doing? Selling stocks and buying?? dollars!! That's why the dollar ALWAYS goes up a little when the market sells off. Add with this uncertainty around the Euro, and it's been going up a lot. Remember-- when you sell stocks, you're buying dollars.

[StockTradingMaster]

@ZoZem Good points. It gets insane if you ask gold bugs what they're buying and they tell you GLD.LOL... as in the whole goal is to sell GLD and get more DOLLARS in return than what you originally bought it for. If the goal was to buy GLD as a safe haven out of US dollars that are declining in value, then why the ultimate goal to sell GLD for even MORE US dollars?! Doesn't sound like escaping the dollar, it sounds like you're trying to play the uptrend in gold for even MORE dollars... LOL

[ArcturusVaughn]

@StockTradingMasterI don't think anyone that's in the ETF "GLD" is in a safe haven because it's all paper assets. The gold bugs I think you are referring to buy "physical" gold and keep it stashed until they are ready to sell it. Then again, what do you get when you sell gold in the US? US Dollars.. I have bought physical gold simply because its going up, no different than buying a stock that's going up. When I feel gold has reached its peek or if it goes parabolic then I will sell it.

[StockTradingMaster]

@ArcturusVaughn Gold is simply a means by which everyone is trying to accumulate more US dollars. The definition of a gold bug is not if they own GLD or gold coins/bars. The definition of a gold bug is someone who: 1 - When gold drops they feel it's a good buy because it's cheaper now, 2 - When gold goes up they feel it's a good buy because it's going parabolic/higher. They have a bias for gold regardless of market conditions. They are not traders but gold perma-bulls.

[ArcturusVaughn]

I'm not ready to play with ETN's so TVIX is out of the question. However; I am considering the hedge ETF's such as EPV which StockTradingMaster suggested. There is another hedge ETF called HDGE which is floating around $27-$28 but the volume on HDGE is not as strong as EPV. The dilemma I have is the commission fees on EFT's; the account I have will only wave commission fees if I keep an ETF for 30 days.

[StockTradingMaster]

@ArcturusVaughn Dude, that sucks. Why not use Scottrade?

[StockTradingMaster]

I have Scottrade and have no problem with any fees. When you make 10%+ in a day or two, the fees are such a small portion of your winnings it's a non-issue, at least for Scottrade.

[ArcturusVaughn]

@StockTradingMaster I have an Ameritrade account and gave them a call this morning inquiring about ETF commission fees and I will only pay a fee of $19.99 if I pull out before the 30 day mark. Living in a world that's loaded with hidden and "surprise" fees on damn near everything it will tend to make a person weary. You are absolutely right, StockTradingMaster, 20 bucks on a commission fee is peanuts compared to the possible gains one can make betting on the bears. Harrgh!

[StockTradingMaster]

@ArcturusVaughn Give Scottrade a call. I can trade out of ETFs like TVIX, TNA, and TZA as much as I want and I'm not charged a fee of $19.99 if I do it in less than 30 days. That sounds more like "funds" as in "mutual funds" that have 30 day rules in their prospectus.

[ArcturusVaughn]

@StockTradingMaster TD Ameritrade charges commission fees for ETF and Mutual Funds that are held for less than 30 Days. It's no biggie for me right now because I have 500 or 30 days of free trading so I will jump to Scottrade once my free trades expire. I have been eye balling Fidelity but after reviewing Scottrade I like it a lot better. Thank you for the recommendation.

[JAMESKOVAL]

Interesting note for TVIX traders - according to my online brokerage, one cannot place a stop loss on TVIX. If you are going to take a position in TVIX, then you are going to have to watch it for pullbacks.

[ArcturusVaughn]

@JAMESKOVAL In that case the best thing to do is set a watch alert to either your cell phone (via txt msg) or email or both.

[StockTradingMaster]

@JAMESKOVAL Or, do what I do, place a limit order to either buy or sell, depending on if you're entering or exiting TVIX, using good for the day.