It's An Opportune Time To Short Sell With Proshares Bear Market ETFs SKF And SJF
Sunday, 27. July 2008, 03:04:49
The yen carry trade is starting to unwind, having attained and gone through Peak Currencies: the stock market is "set to fall".
The ETFs SKF and SJF are the two best performing bear market ETFs; they are short the poorest performing sectors of the stock market. That is, they are short the financial sector and short the Russell 1000 Value Shares.
The financial sector performed well compared to the overall market over the last five years, and payed a handsome dividend as well; but in April 2007, the finanical sector started to falter with subprime troubles, and then took the stock market lower in October and November of 2007 with the Citigroup CDO Bust, as is seen in this ongoing five year Yahoo Finance chart; the Freddie Mac, FRE, and Fannie Mae, FNM, rescue rally that began July 16, 2008, is now over. The concept is that the bottom has not been reached; so the idea is sell the financial shares until the bottom has been reached ... the 'age of financialization' that came through the reapeal of the Glass Steagall Act, that inflated stocks, and created leveraged CDOs, and LBOs, is over; there must now be a great unwinding of fiat wealth ... the level two assets and level three assets at banks, KBE, and investment bankers, KCE, as well as the mortgage backed securities held by Freddie Mac, FRE, and Fannie Mae, FNM, and the US Treasury Bonds, TLT, and BTTRX, as well as the junk corporate bonds, HYG, must all, according to the Liquidation Thesis, be liquidated, that is done away with.
It is interesting to observe that the Russell 1000 Value Shares have been under performing the Russell 2000 shares for the last five years, as is seen in this ongoing five year Yahoo Finance chart; the 1000 Value will now fall even faster than the Russell 2000; the concept here is that there is no value left in investing; so the idea is sell the "so called value shares", sell them hard, sell them to the max.
Yes the value stocks have underperformed the growth; and they will continue to fall faster and faster away from the growth: the value shares, next to the financial shares, are going to win the race to the bottom; that is why one should be short selling them.
SKF is 200% inverese of the Financial Shares, that is, 200% inverse of IYF.
SJF is 200% inverse of the Russell 1000 Value Shares, that is, 200% inverse of IWD.
The ongoing MSN Finance chart of SKF and SJF, seen here, shows that these two started to perform well in October 2007, as the Citigroup CDO Bust struck the stock markets.
I am of the conviction that the banks, KBE, and investment bankers, KCE, were "techinically insolvent" the very moment that Glass Steagall was repealed. And that they were "marketplace insolvent" on October 7, 2008, when the Citigroup CDO Bust commenced; it was at that time they became viable candidates for short selling; and their toxicity spread to the general stock sector in November when an Elliott Wave 3 Down got well underway.
The ongoing Yahoo Finance 5 day chart of SKF and SJF shows these two ETFs are now stable, having recovered from being oversold.
The Stockcharts.com chart of SKF, and SJF, shows these two are prime and ready to go long again.
In as much as the Russell 1000 Value is heavily weighted with oil production shares, at least 12%, and financial shares at least 6%, I recommend that one, go short the financial sector with SKF for the sake of simplicity.
I am encouraging that one either be invested in gold, or be fully leveraged to the bearish side; thus my investment strategy, for the stock investor, is 3/3 in Bearish Leverage. This contrasts with Lynn T who is 1/3 in Bullish Leverage and 2/3 in Cash mode. Please note, any ETF positions should be in a trust account and not in a brokerage account.
And I've said it before, and I say it again, I am not a licensed investment professional; I am a blogger; I have never taken any compensation for anything I have written in this blog; I suggest that one consult a licensed investment professional before making an investment decision.
Related
A contributor to Your Trading Stock was paying attention to the SKF during trading this last week and picked up on the double down explosion pattern in SKF, and bought at a very handsome price on Thursday July 24, 2008 when SKF was really oversold and coming back up in price.
The ETFs SKF and SJF are the two best performing bear market ETFs; they are short the poorest performing sectors of the stock market. That is, they are short the financial sector and short the Russell 1000 Value Shares.
The financial sector performed well compared to the overall market over the last five years, and payed a handsome dividend as well; but in April 2007, the finanical sector started to falter with subprime troubles, and then took the stock market lower in October and November of 2007 with the Citigroup CDO Bust, as is seen in this ongoing five year Yahoo Finance chart; the Freddie Mac, FRE, and Fannie Mae, FNM, rescue rally that began July 16, 2008, is now over. The concept is that the bottom has not been reached; so the idea is sell the financial shares until the bottom has been reached ... the 'age of financialization' that came through the reapeal of the Glass Steagall Act, that inflated stocks, and created leveraged CDOs, and LBOs, is over; there must now be a great unwinding of fiat wealth ... the level two assets and level three assets at banks, KBE, and investment bankers, KCE, as well as the mortgage backed securities held by Freddie Mac, FRE, and Fannie Mae, FNM, and the US Treasury Bonds, TLT, and BTTRX, as well as the junk corporate bonds, HYG, must all, according to the Liquidation Thesis, be liquidated, that is done away with.
It is interesting to observe that the Russell 1000 Value Shares have been under performing the Russell 2000 shares for the last five years, as is seen in this ongoing five year Yahoo Finance chart; the 1000 Value will now fall even faster than the Russell 2000; the concept here is that there is no value left in investing; so the idea is sell the "so called value shares", sell them hard, sell them to the max.
Yes the value stocks have underperformed the growth; and they will continue to fall faster and faster away from the growth: the value shares, next to the financial shares, are going to win the race to the bottom; that is why one should be short selling them.
SKF is 200% inverese of the Financial Shares, that is, 200% inverse of IYF.
SJF is 200% inverse of the Russell 1000 Value Shares, that is, 200% inverse of IWD.
The ongoing MSN Finance chart of SKF and SJF, seen here, shows that these two started to perform well in October 2007, as the Citigroup CDO Bust struck the stock markets.
I am of the conviction that the banks, KBE, and investment bankers, KCE, were "techinically insolvent" the very moment that Glass Steagall was repealed. And that they were "marketplace insolvent" on October 7, 2008, when the Citigroup CDO Bust commenced; it was at that time they became viable candidates for short selling; and their toxicity spread to the general stock sector in November when an Elliott Wave 3 Down got well underway.
The ongoing Yahoo Finance 5 day chart of SKF and SJF shows these two ETFs are now stable, having recovered from being oversold.
The Stockcharts.com chart of SKF, and SJF, shows these two are prime and ready to go long again.
In as much as the Russell 1000 Value is heavily weighted with oil production shares, at least 12%, and financial shares at least 6%, I recommend that one, go short the financial sector with SKF for the sake of simplicity.
I am encouraging that one either be invested in gold, or be fully leveraged to the bearish side; thus my investment strategy, for the stock investor, is 3/3 in Bearish Leverage. This contrasts with Lynn T who is 1/3 in Bullish Leverage and 2/3 in Cash mode. Please note, any ETF positions should be in a trust account and not in a brokerage account.
And I've said it before, and I say it again, I am not a licensed investment professional; I am a blogger; I have never taken any compensation for anything I have written in this blog; I suggest that one consult a licensed investment professional before making an investment decision.
Related
A contributor to Your Trading Stock was paying attention to the SKF during trading this last week and picked up on the double down explosion pattern in SKF, and bought at a very handsome price on Thursday July 24, 2008 when SKF was really oversold and coming back up in price.
WIDGETIZE