ETF Scam - Evidence Revealed

http://trade-technicals.blogspot.com

Sorry for any poor grammar in this article. Grammar is by far not my expertise.
The stock market is very speculative in my opinion. Am I to believe everything that has been told? I don't work behind the scenes where the money flows in big numbers, but if they refuse to tell us the casino similarities I feel there has to be more.

ETFS:
Jan 29/08 UUP (1x Long Dollar) $23.40
Sep 9/09 UUP - $22.90 (-0.50, -2.1%)

Jan 29/08 UDN (1x Short Dollar) $27.81
Sep 9/09 UDN - $27.84 (+0.03 +0.1%)

--Interesting how these two numbers do not match on a single yield stock. The percentages are close, but not accurate.

Triples and double yield funds have been known for this to happen based on their design. The truth is the design of % gains and losses do not match. Usually if one of these gains 3%, the other may lose 3.03%. The problem is this: The up and down percentage between the two ETFS should be designed that the higher percentage gain a little more in #s than smaller. If going from 100 to 105 is 5%, the opposite should be 4.76% with the calculation of (5/105). Instead when one of these ETFS makes 5% the other usually loses a share over it and maybe lower. (usually greater)

The 3x financials show us a great example of this.
3X Long & Short Financials
Since Nov 21/08 - FAS (Long) $80.00
Sep 9/09 FAS - $76.03 (-3.97, -5.0%)

Since Nov 21/08 - FAZ (Short) $1452.00
Sep 9/09 FAZ - $23.42 (-1428.58, - -98.4%)

FAZ and FAS were never that high at the time. It is because they gave these ETFS a reverse split to make them look bigger. These babies are designed to lose long run. If you know they were designed to be losers long run, is that a fair rule to have with these funds? Yes it would be, and the reason for that is the extra gains can be huge if you have good timing. However, if you wanted to be safe and not play the volatility would it be better to play the single short financials instead ?

No, this game seems rigged when you have the following:

Financials Long XLF and Short SEF for July 11-08 to today

XLF Then - $18.68 Today - $14.50 (-22.4%)
SEF Then - $79.70 Today - $46.36 (-41.8%)


We see the longs down a lot and the shorts more! This is because of the higher volatility that comes in this sector and most likely price fixing. last week XLF lost 3.59% on a day where SEF gained +3.29%.

By theory if XLF losses 3.59 that would be an equivalent of losing 3.59 on 100 (Drop to 96.41.)

Therefore 3.59 gain on 96.41 works out to 3.72%. This should have been the gain based on XLF losses. Instead it gets 3.29% which is a significant penalty when there are 52 weeks and around 250 trading days in a year.

The Gold isn't as affected (I wonder why LOL) as both the single and double gold are only down under 1% each since the February top. Still, they are both down.

Not mentioned in this video is USO (which tracks OIL).
USO JULY08 HIGH - $119.17
USO FEB09 LOW - $22.74
CURRENT - $36.94

OIL COMEX
JULY08 HIGH - $146.65
JAN09 LOW - $32.70
CURRENT - $71.73

The Oil Comex has done better than double from its January bottom where USO has only gained around 50% and their bottom was a month later. This means that it has been a part of serious hits. Those investors whom played for oil going higher have been quite frankly screwed for playing USO.

The comex needs to double to get to their current highs, and USO needs to gain more than 200% to get back to their levels.

Thank you for reading this article and watching my video

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[loveguitars]

Good to know about FAZ and FAS. If the market does crash what is worth considering getting into.

[endlessmountain]

FAZ, just sell it when its high. These things go up and down so fast are designed to be losers. I have ran a lot of simulated calculations and put some formulas together to show this. As of now FAS is up 7.58% and FAZ is down 7.57%. That is wrong for if one is up 7.58% the other should be down 7.05%.

[loveguitars]

Still Breaking new lows in FAZ.

[endlessmountain]

as long as the market keeps rolling, this will lose another 99% over the next 3 years no matter how much the markets crash for the design on these. FAS will also lose 99% in this time.

[NicosMind]

Hey endlessmountain how are you?

I was wondering if theres any ETFs or ETNs that you would recommend at all? Im a great fan of Jim Rogers and was hoping to buy one of his ETNs. But im a small investor. I already own some gold and silver and was wanting to branch out. The way i see it is i want to buy a battered down market but i know buying from a battered market is risky, so was hoping for an ETN/F

Any advice you can give me would be greatly appreciated :D

[endlessmountain]

hello

if you own real gold or silver, then shorting them is only that as insurance.

The only thing I like and would feel free to share on the equity markets are PUTS for XLF that have strikes of $10 or higher and for at least six months from now.

[solojam]

There should be class action lawsuits against these funds, they are pure BS.

[vention4wh]

But what are the fees associated with owning hard silver and gold rounds? Oh that's right! There are no fees. I lost some money on SLV but that won't happen again. Just give me time to accumulate precious metals and other hard assets (like my home) and get them free of debt and I'll be ok. I figure being a debt free home owner is about the best retirement savings you can have. If you don't have that monthly expense of rent or a mortgage you can live very comfortably on a very low income.

[vention4wh]

@likeminas

Good for you! I'm about 49% ahead. Every time I buy more though it decreases the overall return, since I'm buying at today's price plus the additional markup that the coin shop charges. I paid off the condo last November and since then I've had about 2600 extra each month (after all my spending, groceries, gas, insurance, odds and ends, and spending money). I've been putting it mostly into silver.

In time my rising savings will meet the price for the home I want, then I'll buy it.

[likeminas]

@vention4wh Ohh well.

I bought SLV two months ago and now I'm riding on a 30% return

[regretlist]

this aint about escape the fate is it??

[matrixtradingclub1]

Stop loosing money . Get the stock market index direction for the week before you trade every moday morning , google matrix trading club nothing to loose free to try it now.

[DISSALINED1]

this is why we trade the options on the etf's and indexes. you can get in with very limited risk and a great amount of reward!1

[depokerguy]

Leverage Decay....definitely not built for buy and hold.

[Adahondeayenh]

The only guaranteed way to make money off of FAS and FAZ is to short sell them both :) what do you think?