Oct. 5 (Bloomberg) – U.S. stocks rallied, giving the Standard & Poor’s 500 Index its biggest two-day gain in more than a month, as economic data topped estimates and investors speculated Europe will act to contain the region’s debt crisis. off to a good start. it isnt too late to hop on this train.
It was a good call - do you have a target, timeframe, etc?
higher risk does not equal higher reward…not all the time. the most successful investors do not take the most risk (i.e. buffet).
2-12 months or longer if necessary. Target 1300.
I’d have a stop in place.
Lol SkipE99 it’s funny how so many people are worried about your $300. Lots of bears in here.
Look at the returns on Leveraged ETFs like FAS and FAZ. They don’t correlate over long periods of time. Look at FAZ vs FAS for 3 months/ 6 months …etc. Couldn’t you just SHORT both ETFs???
robber07 Wrote: ------------------------------------------------------- > Look at the returns on Leveraged ETFs like FAS and > FAZ. They don’t correlate over long periods of > time. Look at FAZ vs FAS for 3 months/ 6 months > …etc. Couldn’t you just SHORT both ETFs??? Yes, I’ve done it a few times in the past. The two biggest problems are if you face a slow, steady rise in the price of the underlying; or, what happened to me every time I did it, the shares get called away from you by your broker forcing you to cover. It’s good in theory, but hard in practice.
Looks like another good day for you today.
SkipE99 Wrote: ------------------------------------------------------- > 2-12 months or longer if necessary. Target 1300. Seeing that you have done so well, I would take the profits at this point. These are day trading vehicles. The daily rebalancing makes them not so good for longer term investing. Please read: http://www.investopedia.com/articles/exchangetradedfunds/07/leveraged-etf.asp#axzz1a9i6ibTn
Cant deny I called that bottom within a couple hours of it happening. Admittedly luck, but up 28% since first post. If it were not for a 2 month holding requirement on my positions I would sell today and take my $83 ($63 net of tax) and take the wife out to Applebees for some of that high life living!
keep chugging up baby!!! 51% gains in two weeks.
Just curious, but if you’re just messing around with a few hundred dollars, and you’re making a straight-up timing call, why not buy options on the levered ETF? Could have been up a couple hundred percent. Buying calls on SDS has been rewarding this year.
Does this mean you can buy us burritos now? Where is my burrito, damn it!?
Yes. $1 Burritos for 150 of you! First 150 to respond get one! 2 reasons why i dont trade options: 1. The trading Platform I use is also the company I work for and does not have the best option trading platform and I get cheap trades. I rarely make any plays. UPRO was my 10th individual stock purchase and is a short term trade. My two winners that have both made me thousands (which is a lot relative to the investment) are RAX and IMAX. On a side note. I am also preparing a strategy based strictly around gaming companies. MSFT and SNE will anchor the strategy with Konami, ATVI(Activision Blizzard), (not sure on Nintendo yet, their future stock return will be almost entirely dependant on the release and success of the Wii U and I am on the fence with that system until I get to play with it), Take Two Interactive, EA arts, and MAYYYYBE Gamestop and THQI. I am bearish on Gamestop though. Any position in the strategy would be a short on that stock and I am not sure yet if the strategy will only go long or long/short. The driving factor of the strategy is that the gaming industry as a whole will continue to grow and outperform the S&P 500 Index over a 5 year initial time horizon. Graphs look promising, but I still have a lot of work to do.
In for the burrito. Regarding the gaming strategy, if CODMW3 is half as incredible as it looks, just lever up ATVI all you have and you should be golden. Can’t wait for that game.
I’m a long term TTWO investor. Owned it years ago, got burnt because of their shady accounting methods and left. But, I couldn’t stay away. Bought some a couple years ago and continue to buy the dips. It’s one of my largest holdings now. I’d love to hear more about your gaming strategy. Aside from TTWO I’ve made some short term trades in just about all the names you mentioned (except Nintendo). As an active gamer I have a personal interest in the companies. Just off the top of my head, why anchor it with MSFT and SNE? Video games are a drop in the bucket for them. Now I’m going to have to look at some correlations between those two and the pure plays…
I figured you cannot have a gaming strategy without including the creators of the largest and best gaming systems on the market right now. You are exactly right that it is a drop in the bucket for them, but they are also strong blue chips that help to reduce unsystematic risk. I started my analysis on Microsoft and their interactive entertainment division and here is an excerpt (the name of the strategy is Legolas and i have not proofread or edited this content yet. these are raw notes): “Microsoft Serving as the core anchor position of Legolas is Microsoft. The chart below illustrates MSFT 5-year historical performance vs. the S&P 500 Index. Past 5 year returns on the S&P 500 are at (-10.88%) while MSFT posted (-5.04%). Given Legolas’ objective of outperforming the S&P 500, MSFT past 5 year performance reflects a suitable core position. MSFT tends to be a relatively safer play within the portfolio anchoring the more speculative and smaller cap companies and providing a blue chip core stock with impressive and continuously increasing dividend paying history. That is not to say that MSFT is going to continue to beat the S&P 500 Index. Of all the companies in Legolas, none are more broadly diversified into as many different product offerings and services as Microsoft. A close eye needs to be kept on their ability to maintain a competitive leadership position in the software community, particularly their Tablet development, Mobile Operations, and their current star, the Xbox. When asked what it was like to take over Microsoft stock coverage for Goldman Sachs, Sarah Friar replied,” It was a little daunting because you look at a company this size, you think it must be so complicated. In some ways it is. If you get stuck in the detail of Microsoft you might never come out again because there’s so much going on.” On that note, I would like to point out that an analyst could literally spend thousands of hours diving through the financials of the different divisions to reach a buy/sell/hold decision on Microsoft. Instead, I prefer to focus on short term historical performance less than 5 years.”
I am way bullish on ATVI. It has so much working for it. Here are some excerpts from my ATVI notes: "Blizzard currently has three main franchises in the gaming industry: Warcraft, Diablo, and Starcraft. Deep role playing games, MMORPGs with millions of players and subscribers working together across the globe. ATVI longer term 10 year performance relative to the S&P 500 Index represents significant outperformance. ATVI posts a 10 year return of 449.10% versus the 8% return of the S&P 500 Index. ATIV recent historical performance significantly outperforms the S&P 500 Index. 5 yr return of ATVI as of today, October 6, 2011, is 65.17%. The past 5 yr return of the S&P 500 Index is (-14.38%). While video games in the past may have represented a luxury purchase, we are seeing a trend towards gaming becoming an everyday activity taking part along with television watching. If ATVI is able to perform and grow under the economic conditions and volatility experienced in US Domestic markets, its ability to grow under stronger economic conditions has the ability to bring significant alpha to Legolas’s long term performance. Brand names such as Call of Duty, World of Warcraft, Diablo, and Rock Star have developed a hardcore following that has a high likelihood of transcending to future generations. Today we are seeing first hand the children of the 80’s and 90’s sharing gaming systems and strategies with their children. I anticipate this trend to continue as long as Americans continue to love highly technical and visually and audio appealing entertainment.
I ran all the correlations between MSFT, SNE, TTWO, ATVI, ERTS, and THQI. Very surprising, the highest was MSFT and SNE at 0.53 (not surprising those two were the highest, surprised they were all so low). Almost all of the correlations were between .30-.40. Video game companies live and die by their IP. Got to go with the companies that have the best titles, and consistently make the best games. On that note, EA sucks.