From lilitulip - if both scenarios will head down, why sold the bear ETF? and earlier this week you kept saying you regret you didn't have more bear ETF. Thank youlilitulip - Good question! Very good question indeed! Let me tell you what my pain is, and maybe all my friends here can help me to figure out a way to resolve this problem! I sold my bear (3X) ETFs because they fell below the low of last pull back (05/29/2012). (After that, their rhythm of going up with higher highs and higher lows has been interrupted.) What is my pain then? My pain is that 3X ETFs generate too many false signals, which reduces my profit and increase my loss.. For example, EDZ broke the low of 05/22/2012 on 05/29/2012 where EEM did not exceed the high of 05/22/2012 on the same day. The false breaking below previous wave low on 05/29/2012 stopped my EDZ out (with profit). I was not happy about being stopped out that day because I would not have to chase it back on 06/04/2012 if EDZ did not get falsely stopped out. And you know the rest story ... if I did not chase EDZ on 06/04/2012, I did not even get trapped at high price!
OK ... so you know my pain is that I want to find some ETFs that have good liquidity, high leverage, but less false signals. Anyone has a suggestion?
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