I'm concerned with Proshares inverse funds. They did a reverse split in April, I guess, and my SRS Jan 2011 112.5 call turned into something called SRS1 worth 23 cents. They have class-action suits against them.
I think he is full of crap unless you are day trading small moves. I would agree with the leveraged (2x or 3x) that speed is key because all moves are exaggerated. I have held (and slowly built up over time) about 1/3 my play money pot in SH, DOG and UUP since September last (ouch). I am in and out of DTO. Never had any problems with transactions or timing. Not sure how much is guys like us buying or selling versus the ETF fund managing the price - but SH has done a fine job following the index. Trust me, if the markets start a sustained drop money will be FLOWING into this baby fast. The data he uses most likely reflects the fact the market was going up - which by definition means there are more Bulls then Bears eh?
Maybe. I bought 2,000 shares today - my first ever purchase of a short ETF. I am less comfortable shorting SPY (and I can't do it from within my 401k anyway). Hopefully my purchase is well below the radar, but $10k / second is not what I would call fast.
I have 4700 shares SH, about $250K worth. I had double that in SDS in 2008, and had no problems selling quickly, but SH has less liquidity than SDS. I'm considering replacing my position with short SPY.