ASX:BEAR
- Thread starter hiho
- Start date
phrenzy said:
might be a good buying opportunity, but markets will probably rally again tomorrow.
The thing I like about these is they are much easier to deal with than options, obviously no expiry date as well so your trade doesn't end up entirely worthless.
Still, it's a speculative punt so not for everybody.
I wish there were a bit more ETF variety on the ASX, but volume and expense would be an issue. I like the idea of inverse ETFs and I invest in them occasionally on the NYSE, but as far as I'm aware BEAR and it's leveraged brother are the only inverse ETFs on the ASX. Inverse bonds, emerging markets, other world indices, sectors etc. Imagine how well you would be doing if there was an inverse energy ETF listed on the ASX
That's what I do use, but for those who don't want to use leverage, it would be another option
The other thing, particularly with indices and sectors, is the gaping between close and the next open
I caught the ASX drop on Monday using a CFD, but closed out the position before the end of the day. It wasn't so much because I expected a bounce the following day, I just didn't want to lead it to chance due the risk of gaping at the open the following day which in hindsight was the right move anyway. Didn't catch the rebound though and probably won't sell it again. Way too much volatility in the market for me atm.
Caput Lupinum said:
I had my eye on some SPY December puts last week that went from 12c to $1.40. I missed it of course it's just something that happened so damn fast.
I like the ETF's as they are a fair bit less volatile than the CFDs/options plus you don't get that open ended leveraged exposure where you can lose more than what you put in.
Abossy said:
Same, also I like to have an unleveraged investment to take advantage of the longer term trend in the market whilst using CFDs, options and forex for short-term/day trading
asx: BEAR
The Betashares asx bear etf is in a mysterious condition. Will it transpire to be a double bottom, or is it preparing to break support? Volume isn't giving me any clues, nor is anything else. Currently still in an 8 month downtrend with resistance to rises intact.
BEAR etf All Data Weekly Chart
[imgz=http://forums.silverstackers.com/uploads/1893_big_22.gif]
[/imgz]
The Betashares asx bear etf is in a mysterious condition. Will it transpire to be a double bottom, or is it preparing to break support? Volume isn't giving me any clues, nor is anything else. Currently still in an 8 month downtrend with resistance to rises intact.
BEAR etf All Data Weekly Chart
[imgz=http://forums.silverstackers.com/uploads/1893_big_22.gif]
Purely from a price action perspective I think charting these etfs with out looking at the index can be problematic. The underlying index has retraced less than 70% of this move down from the march/april 2015 highs in the asx200 whilst the short etf has pushed below lows a during the same time period around $16.
BEAR etf compared with asx 200 (XJO)
Divergence: double bottom of BEAR not reflected by a double top in the XJO
Could it suggest complacency, optimism, or just not much buyer awareness of the BEAR etf?
Or should I get a job?
BEAR cf XJO
[imgz=http://forums.silverstackers.com/uploads/1893_big_24.gif]
[/imgz]
Divergence: double bottom of BEAR not reflected by a double top in the XJO
Could it suggest complacency, optimism, or just not much buyer awareness of the BEAR etf?
Or should I get a job?
BEAR cf XJO
[imgz=http://forums.silverstackers.com/uploads/1893_big_24.gif]
Apparently it's not a divergence in underlying value that you can arbitrage, but decay from compounding losses due to daily rebalancing.
The Trouble With Inverse ETFs (And Other Structured Securities)
http://www.mercenarytrader.com/2011...inverse-etfs-and-other-structured-securities/
The Trouble With Inverse ETFs (And Other Structured Securities)
http://www.mercenarytrader.com/2011...inverse-etfs-and-other-structured-securities/