Sunday, January 3, 2010

Results of going 200% Short on Nov 23, per EW advice, the XMAS Massacre

SDS closed at 35.95

Now it is 35.05.

But it hit a low intra-day of 34.26 on New Years Eve.

On a closing basis, that is only a 2.5% loss for those that went 2X short on Nov 23, per EWI recommendation.  Of course, if you were buying near term puts to achieve the short, you probably lost almost everything, or at least had a costly roll forward.

But if you were stopped out by the drop to 34.26--thats almost a 4.7% loss.  Not terrible, but sure painful if you saw it recover 2.2% of that value the same day.

 On the QID, your losses would be 8.6%, or 10.7% if you got stopped out on New Years Morning.  Let the Gap Games roll....

On TWM, losses of 11.9% and 15.4% for that wicked final day stop out.

And don't forget about those tall building indicators....yowza!

And the Christmas Eve Massacre.    Does Barney Frank sometimes remind you of Barney Fife, except that he is not harmless.

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