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June 21, 2007


Stock Du Jour (SRS) & Random Observations

Chop with a positive bias in the morning, but then at 1 PM precisely the selling hit hard and continued all afternoon — a very weak close.

Notable New Lows: Lots of financials, REITs, and Homebuilders — see a theme here? Sepracor (SEPR), UTStarcom (UTSI), and Select Comfort (SCSS).

Notable New Highs: First Solar (FSLR), Accenture (ACN), Fuel Tech (FTEK), and Ingersoll Rand (IR).

I’ll feature a weekly chart of the UltraShort Real Estate ETF (SRS), issued in January this year, as it moves to a new high.

“UltraShort Real Estate ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones U.S. Real Estate Index.”

Why is there a “200%” after twice and an “opposite” after inverse? Are people that stupid? Twice the inverse, c’mon people. (Remain short the USD.)

SRS

This entry was posted on Thursday, June 21st, 2007 at 8:21 am (utc+8) and is filed under Trading and Investing.

10 Responses to “Stock Du Jour (SRS) & Random Observations”

  1. bjk said:
    June 21st, 2007 at 2:17 pm

    I had shares of the XLF inverse SKF that I couldn’t sell this afternoon, even with a market order and even after waiting for 10 minutes. These inverse ETFs can be very illiquid.

  2. bjk said:
    June 21st, 2007 at 2:55 pm

    As I think about it, it must be IBs fault, not the ETFs. There should be a market in any stock for a market order, right?

  3. C. Maoxian said:
    June 21st, 2007 at 6:34 pm

    bjk: Yeah, I looked at SRS and it’s super-illiquid, definitely not a day trading vehicle… dunno about SKF but it’s probably similar.

  4. Richard said:
    June 21st, 2007 at 7:51 pm

    Yes, unfortunately, people are, indeed, “that stupid” and a thousand times more so!

  5. bob said:
    June 21st, 2007 at 7:53 pm

    there was a problem with AMEX yesterday pm til the close. i believe some brokers allowed to trade through an ECN, and some say IB stopped trading in them.

    (first sentence = 100% true, second is reading ppl’s comments on it)

  6. bjk said:
    June 21st, 2007 at 8:18 pm

    Looks like Bob is right. I should have just bot some XLF and boxed against my short.

  7. C. Maoxian said:
    June 21st, 2007 at 8:39 pm

    bjk: Yes, I prefer boxer shorts over briefs too. ;-)

  8. bob said:
    June 21st, 2007 at 9:22 pm

    was very glad i covered my KUN short in the a.m., because i’d have wound up cursing the AMEX in the pm…

  9. Vic said:
    June 22nd, 2007 at 4:19 am

    Hi CM,
    Here are my two cents RE: SRS. Twice is 100%, and 200%. For example: 2 * $1 = $2; which is 100% * [($2-$1) / ($1)] = 100%
    Regards, Vic.

  10. Maoxian » Stock Du Jour (CFC) & Random Observations said:
    July 25th, 2007 at 7:46 am

    […] Notable New Highs: An extremely short list to choose from — Biogen (BIIB), Checkpoint Software (CHKP), Third Wave (TWTI), and the UltraShort Real Estate ETF (SRS) (first featured on June 21). […]

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