Watching the tape since last Friday let me believe that today we have a destiny with S&P 1001 as a lower high for this rally. So, in full disclosure if we hit it today, I'll take a big shot on the dark side for my last leg down in this market fall coming next week. I'll use these players (Long):
Hi, goodvibe. I'm a very old timer on this board with no opinion about whether the market is going up or down, but a warning about short funds.
Be careful. Short funds work in a very squirrely way. It's fundamental to how NAV is calculated.. You can get a situation where the stuff they're shorting goes up, then comes back down to the same spot, but you've lost a bunch of money. For a short fund NAV depends not only on changes in the prices of the underlying securities, but on changes in the amount of money in the fund.
This doesn't happen in a long fund, but short funds reward some shareholders at the expense of others in a way that is tricky to predict (unless you know not only how the market will move but how shareholders will move in and out of your fund).
Thanks Astral for the tip. I got your point but my main concern regarding these short ETF is not what THEY do to price themselves but honestly what Uncle Hank might do to them.
If you remember when they banned short, some of them were destroyed overnight (they came back quickly which was impressive). Although, I don't believe they will do it again, I have it in the back of my mind. Desperate situation demand desperate moves.
They are very rewarding funds and with falling market, some coins kept for themselves or others won't hurt much. I'm not into marrying them anyway, they're just a fling. If you catch my drift. :)