Al_Dente wrote:“The Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares (NYSE: GUSH) closed Friday with an April gain of over 34 percent, making it the second-best performer among Direxion's leveraged bullish exchange-traded funds (ETFs) on a month-to-date basis.” https://finance.yahoo.com/news/leverage ... 35842.html
GUSH (3x XOP) expense ratio is too high
GUSH buys only XOP (its only holding besides cash), leverages it, and charges you 3x expenses for the privelege.
Better to just use XOP and triple the number of shares u would normally buy; getting that 3x leverage with less expense?
It’s obvious that traders agree, as XOP average-daily volume is 17million shares (vs GUSH volume 1.4 mil)
Also
USO, UCO = K-1
XOP, GUSH = 1099
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
Buckle up on the EURO .. and Europe Financials… trouble brews with Italian Elections, remember large US hedge fund has largest bet on against Italian banks for months.
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Need to learn to trust my stop loss points. Sold at breakeven on the pull back around 11:30 and now LABU is up 70 cents since. I would not have been stopped out on the pullback. Leaving money on the table....
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The BIG problem with any sort of system is that signals, including stop losses, are only a good idea in aggregate. Individually the odds of them working as intended are no better than the system so we are always trying to be a better trader than our own system.
Trades with cats wrote:The BIG problem with any sort of system is that signals, including stop losses, are only a good idea in aggregate. Individually the odds of them working as intended are no better than the system so we are always trying to be a better trader than our own system.
You are right. I usually find that I'm worst than the system when I inject my feelings. I tend to take small profits earlier rather than waiting on the bigger gains. Always learning!
So I guess today counts as a very professional day
I think the issue today is oil up on political news but clearly the short squeeze is over. Or as FT71 said this morning other time frame traders are done buying for now. He did comment this morning that the shape of the volume profile from Friday was pretty ragged, as in no clear consensus as to were price should be. Which is what we have seen for some time. Which means with no clear consensus among various time frame traders we will continue to experience volatility.
Perfect example, Uncle Warren goes big on Apple but Humble Student and others are pointing out today that Warren took a one billion hit on mark to market in his portfolio and they ask how many others can do that? Then in a very well publicized note Michael Hartnett is suggested shorting FANGS because market is assuming higher rates won't hurt lesser developed countries. So I guess Merrill clients are shorting part of Berkshires portfolio. It takes buyers and sellers to make a market.