PowerShares DB Crude Oil fka DTO

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Deteriorating 3x DTO 97.54 1.30 1.35% 545,360



Deteriorating 3x Russell ETF values, e.g. FAZ/FAS

Charts & PDF
http://trend-signals.com/Analysis/090525FASFAZ.htm

As previously, noted FAS/FAZ prices are both deteriorating as shown on the price charts. To briefly comment on the price impact, there are several contributing reasons such as 1) loss of values from rebalancing, 2) manipulation of market makers, and 3) competition among market markers, and other factors. The aforementioned stated speculations are based on what I have observed.Fact is that prices are dramatically deteriorating since its inception, however, when we compare the banking indexes, the dramatic price actions are within the context which we are considering even though the FAS/FAS have been around only about 7 months since Nov 2008. The 3x price action is much like that of financial indexes performance in a much shorter period.

Based on the short life span of 3x, especially the FAS and FAZ price actions, can we conclude that the 3x ETF by Direxion would fail to live up to the longevity of SPY, DIA, and IWM as example. FAS and FAZ, among 3x ETFs, look to be exceptions and the price actions are exaggerated by the recent banking industry volatility. Furthermore, the exploding trading volumes and the management fee do not help to retain the value of the stocks.