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DRV - Bought some at $8.20

06/08/2010 03:54 PM by Dave Pinsen

Direxion Daily Real Estate Bear 3X Shrs (DRV). Meh. Picked it quickly and didn't realize it was 3x inverse levered. We'll see if I get shaken out of this one before I have a chance to make money on it.

Rating:
3

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  • 06/08/2010 07:47 PM by Homer315

    I hope you're not planning on holding onto DRV for very long. Those levered ETFs have a systemic problem that will make them all go to zero eventually.

    Rating:
    4
  • 06/08/2010 08:20 PM by Dave Pinsen

    Given the volatility of these levered ETFs, it seems like if you use a trailing stop of ~10% you won't be holding one very long. Going forward, I am going to stay away from 3x levered ones. I may move away from the 2x ones too.

    I prefer shorting individual stocks to buying these. Wish I could do that in an IRA.

    Rating:
    0
  • 06/09/2010 09:14 AM by Dave Pinsen

    Tightened stop here to 7%. Doesn't seem like this will be an auspicious day to hold a levered contra ETF.

    Rating:
    0
  • 06/09/2010 12:07 PM by Dave Pinsen

    Stopped out at $7.53. Paid the stupid tax on this one today. No more egregiously levered ETFs for me.

    Rating:
    0
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