Sunday, July 04, 2010

Timing of Purchasing Inverse ETFs

From my post earlier today about purchasing inverse ETF indexes, such as SH, SDS, DXD, and TZA, I received several questions about the exact timing.  First, the markets are very oversold on a daily basis.  That is, the "Full Stochastics, Commodity Channel Index, and Williams %R are all oversold.  I would expect a short-term bounce next week.  Expecting such a bounce, I will be scaling in my purchases as such.  Since the ETFs under consideration are leveraged between 200% and 300%, I plan on allocating only 30% to 35% of my portfolio into such instruments, with the remaining in Money Market Funds, preferably Treasury Bills for utmost safety.  Second, I will update any of my daily investment activities, as always, on Twitter.  You can follow me by clicking Twitter.

Enjoy your Fourth of July and do remember why we celebrate it. 

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