UltraSHorts, QID

[fedgolfer]

Anyone thinking of buying the ultrashorts during this correction? My trailing stops were triggered on 3 stocks today. Once they sweep into my money market/cash, I'm considering QID or maybe some precious metals as a defensive play during this drop.

 

[fedgolfer]

Anyone thinking of buying the ultrashorts during this correction? My trailing stops were triggered on 3 stocks today. Once they sweep into my money market/cash, I'm considering QID or maybe some precious metals as a defensive play during this drop.

scratch this idea, definitley not a good one since the fast money on the shorts has already been made.

 

[Bullitt]

You've gotta be pretty quick to play that QID. That's a good bear market play, not good for playing whipsaws.

 

[Bullitt]

If you are into quick trades with QID, today is the day to get into it while the indices are trying to bounce higher.

 

[Bullitt]

Currently, open short interest for INTC July 25 Puts is 61,829, July 22.50 Puts is 86,576. It only gets worse as you go down the line. In case you're wondering, those options expire tomorrow. We never did hit that 25 strike price yesterday and today we're off to the races on a short squeeze. Hedge Funds that went short can stay longer than a retail investor because their pockets are so deep. I can guarantee that anyone short INTC is going to act as cool as Roy Hobbs in the bottom of the 9th, but behind closed doors they're popping Rolaids and Pepto Bismol.

Now I know short selling has it's place in the market. One reason is to crush companies that are liars such as the Enron's of the world. However, going short because you think a company is going to miss earnings is not investing, it's gambling.

 

[fedgolfer]

... yes, all the proshares ultra shorts are good tools for quick plays... very quick. Back in Feb, I did make the mistake of holding it overnight only to have it gap significantly lower when the futures on the Nas and USMs were reversing to the upside. Learn from me and don't don't hold it overnight, in most situations Thanks for the info Bullit... please post your short plays.

 

[Bullitt]

Thanks for the info Bullit... please post your short plays.

I don't plan on a short play in general for a while though, this market is moving ahead too strong. A good confirmation of the uptrend we're in is that QID is in a downtrend. If you're looking for an ETF that shorts the DJIA, take a look at symbol: DOG. What a fitting name.

 

[Bullitt]

Thanks to GOOG, MSFT and CAT's "spectacular" earnings calls, I was wrong about my call in INTC. Looks like the short sellers are going to be rewarded for holding until today's expiration after all.