Friday, February 10, 2012

Trying to "Hedge" via the Double Short ETFs

This year's market run-up and some noise from Europe today pushed CCI to day trading the double short S&P 500 etf today.  Wait...I mean employ some advanced hedging tactics to minimize the volatility of the overall portfolio...there that sounds much better.

CCI bought a lot of SDS mid morning and sold it this afternoon for a whopping .1% gain.   Yes, a tie.
That makes CCI 0-1-1 this year on leveraged double short trades.

As an aside, the inter-day moves of the stock market have been very small this year.  Today this double leveraged etf moved only about .5% over the whole span of this trade.  Bespoke Investments had an interesting article about the stock market moves in this article after hours vs trading day.   Seems like an unusually high amount of stock market movement has been occurring in after hours markets not during the US trading day.  I'm not sure if that is a temporary development or more indication of the tail wagging the dog (i.e. futures, options, etfs, foreign stock exchanges, etc driving US equity prices not the reverse).  Not sure what to make of that, but seems like an interesting development.

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