Today, I liquidated my accounts at an approximate loss of 50% and moved my monies into URE. I will hold URE until it reaches $8.00 or $0.00. I figure that URE will only go to $0.00 if life as we know it ends, and I will not care about my shares of URE in a scenario of the like.
Who shares my simple logic?
It has dropped because .REIT seems to be heading lower. $5.25-5.45 seems like another resistance level if the .REIT bounces from Fridays close. This sucker has a few more weeks or months before a reversal comes. 300 points on the .REIT index may be a target for long term investing. We have to keep selling the bounces, the market is telling us this.
I love this logic! ole.virgnny you are like a breath of fresh air and I wish we had more like you. This is my new favorite message board post and I am in on this full on! To everyone else, what do you think you are going to buy when the SRS goes to infinity?
To be semi-serious, the URE has not closed below $3.77 which was the test on December 1st. Despite total despair today (oh I was there) and attempts over the last two days URE has still not closed below $3.77. Holy crap, not to push ole. past that target of $8.00, but I would recommend you sell half at $8 and then hold on for the rest until $20. IMHO that's the bounce we are potentially looking at.
Good bye shorts (short term anyway).
I appreciate the compliment and the response. Additionally, I really like this sentence:
"To everyone else, what do you think you are going to buy when the SRS goes to infinity?"
The dollar will essentially become worthless if "SRS goes to infinity." In a scenario of the like, foreign governments will not support the value of the dollar, and hyperinflation will overcome the United States. The current economies are significantly more global in comparison to the economies during the Great Depression. We have much more to lose today.
I did not know the significance of $3.77, so thanks for the valuable info. IMHO, its value supports the consolidation of URE since December of 2008. Unless the federal government of the United States makes some horrible mistakes in the near future, a large rally is on the horizon.
URE compounds daily, and over time drops; however, when you have some consecutive up days, URE will move higher at a rate above 2X. Holding a leveraged ETF is never advised; however, at or near a market reversal is precisely where you want to hold one. >REIT is just oversold plain and simple. Trading URE is best. Tuesday should be exciting to say the least, and all next week. I am trading around a core position, buying and selling 1/4 of my posiition daily, lower my cost like people do with options. I still think we see $6 once this thing truely reverses course. The best thing you can do with these is catch a 5-7 day consecutive uptrend. You'll make more than 2X, and double your money. SELL if that happens no matter what.
Sage advice! Five stars!
I agree after more thoroughly examining the charts of its core holdings. $6.00 seems reasonable. I will change my limits accordingly.
I invested directly in companies before today, so the ETFs are new to me. (The banks specifically damaged my accounts.) Nonetheless, I recently concluded that URE was showing signs of stabilizing after examining the two-year charts and noticing the heavy consolidation since December of 2008. Although I am optimistic, I recognize that the markets are ready to swing northerly or southerly in a violent way. We are close to a major level of support, ~7400 on the DJIA, so a major move will likely occur at any time.
I can only recoup my losses by staying in the markets, so my bets are long bets in light of the charts and the actions of the federal government of the United States. Only time will validate or invalidate the logic of my bets.
Good trading to you!
I would agree except for the fact that your have time decay so over the long haul, the shares will not keep pace with any market recovery...you would be better putting it into a 1 to 1 index like IYR if you want to buy and hold...
I don't really agree with the warning not to hold leveraged ETFs for the long-term.
I agree that leveraged EFTs are an excellent short-term trading tool and that holding them longer-term in stagnant markets like we have now is unwise. I also understand that a 50% gain in actual summed stock value will not result in a 100% gain (for 2x ETFs). However, even if the leverage averages out to only 1.5x over years, the added annual fee of approx 0.5-0.7% has to be worth it.
Here is a link to a comparision chart. URE and IYR are compared.
You would think that over a year URE would be more than twice a bad as IYR.