Just About Done
The rally that started last week should be just about done. I admit my initial reaction was wrong when I read about IBK raising their margin requirements over a month long period by 35%. Old maxim of buy the rumor sell the news(reverse in this case) played out, in that the market had been in a sharp correction already. By the time the news was made public those in the know had sold before hand. Today will be very interesting. The margin increases BEGIN TODAY. I still believe if they are carried out over the entire period as initially reported, and especially if other brokers join in, the results will bring about a devastating decline.
Sir Chartsmaster,
After some nerve racking losses using leverage in JNUG and NUGT, I have sworn off off them.
But, I’m continuing to hold my SQQQ, bought at 24.21 on 9/9/2020 and cost averaged up (!) at 27.13 on 9/23/2020.
Again, the entire SQQQ position is just 1.35% of my entire portfolio s of today.
It might be a that roller coaster October lies ahead of us!
This unprecedented political chaos environment, plus the earnings (???) reports of 3rd quarter 2020, how can Nasdaq have a smooth sailing? Many have pointed to dramatic declines in advertising revenue at Google and FB.
Let’s see!
GL
I don’t like the leverage aspect because if is like most leveraged ETF’s it is reset constantly. Since it is only 1.35% you should be OK. Good luck.
Yes sir, I’m using leverage for a short-term decent gain, only. Getting wary of the Fed’s next bazooka!
End of quarter window dressing ends Wednesday 9/30/20.
What will 10/1/20 and the following days bring? An opportunity to cost average down SQQQ? I’m holding off being tempted to do it, at least for today so far …
GL