ProShares Ultra Short Silver (ZSL)

[zsvq1p]

trdwl...

This ETF is only based on today's trade.. This will always be a very BAD long trade. Trade this ETF as a hedge or quick buck.

This Short ProShares ETF seeks a return that is -2x the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period.

Example using $100 Starting investment:

Day 1 Value gaining 10% is $100 x 1.10 = $110.00
Day 2 Value losing (10%) is $110 x .90 = $99.00
conversely
Day 1 Value Loses (50%) is $100 x .50 = $50.00
Day 2 Value gains 50% is $50 x 1.50 = $75.00

http://www.proshares.com/funds/performance/the_universal_effects_of_compounding.html


And this too I believe...
The reason is due to contango. The fund is selling swaps, not silver.. a bet on the future, not today spot silver price.

http://www.investopedia.com/articles/07/contango_backwardation.asp

This is the example on UCO...

[trdwl]

Why is there such a big differential in the price of zsl ($95) relative to spot silver now ($20)vs. the last time silver traded at $20 in 2009 when ZSL traded at $621.80. This obviously isn't expiration related, as a similar differential held throughout the year.

[xero90]

check is on the way

[zsvq1p]

Do I owe you 2.5% on profit made? or is this one free?

[zsvq1p]

Do I owe you 2.5% on profit made? or is this one free?

[zsvq1p]

got it... Now watch it go to 100 when I am out.. lol

[zsvq1p]

Chart

[xero90]

think she is done

[zsvq1p]

90.60 fills the gab...

[zsvq1p]

Tapering is the Key question....

The Fed had stunned markets in September when it opted to keep buying bonds at the same pace, after allowing expectations to harden over the summer that it was getting set to taper. Yields on longer-term bonds, which had risen sharply on expectations of tapering, snapped back when the Fed opted to stick with the $85 billion pace.

Bullard said that when the Fed does eventually decide to start reducing bond purchases, markets would be better prepared.

"If we taper because we see a stronger economy, I think the markets will swallow that without a problem," he said.

Next meeting....
Policymakers of the Federal Open Market Committee are next scheduled to gather on December 17-18.

Of course we will keep printing money.. IMO, NO Tapering.

[zsvq1p]

I'm at a 9.23% return.. Not a bad return.

I still believe the gap will fill.

Market usually does well this week. I might take a chance and sell on Monday open.. Then back in on Friday??

[xero90]

giff, what you think...slowing upside here

[zsvq1p]

Ok.. Changed my limit to a

When this condition occurs:
The last of ZSL is greater or equal to 89.98
Trailing Stop with a stop parameter of 1.50 points

We'll see if we can hit this gap...

[xero90]

zsl- maybe 91, yes I'm wondering 100 to 105 this time too

[edit]

[fade]

zsl- going to break 100 again? AGQ bounce after, maybe

[xero90]

there she goes

[xero90]

thanks, saw that 2

[zsvq1p]

Gap

[zsvq1p]

buying zsl.. Just looked.. think I will pick up a few too.
Buy: 80.86
Gonna let that gap near fill sell at 89.95

[xero90]

buying zsl

[xero90]

going to either stay on the sidelines or buy ZSL, pump prices are also falling; not good for gold/silver

[xero90]

short more ZSL here

[xero90]

Thank you, GL too

[Marketwise]

A good move. Silver looks weak still. Could trade quite a bit lower over the next several months - imo - g l.

[xero90]

why I said to short ZSL--- the reason

[xero90]

ummm so what u think now? I'm covering 1/3rd now

[Marketwise]

I did see that post but that is your call to make. I agree though, nothing comes easy in the financial markets. The worst I see is another 40% downside in silver from current levels into 2014 (based strictly from charts). That probably will not happen, but who knows? For awhile now I have been just trading the metal but would like to eventually assume a longer term investment position - possibly next year or whenever I see what I believe to be a washing out and final capitulative ''bottoming''. We shall see.

[xero90]

did u not see this post man, I even admitted it is/was difficult

[Marketwise]

LOL - Silver looking a little ''sluggish'' again - Exercise due caution and diligence if you're playing the metal long or zsl short here - imo - g l t y.

[xero90]

looks like 58 tgt

[xero90]

this is hard, do you cover 1/3rd or not

[xero90]

get ready to short ZSL like crazy

[xero90]

let's see what happens this week --hmmmmm

[xero90]

around 85 to 90 EOM

[SilverSurfer]

which gap?

[xero90]

waiting for that gap to fill EOM

[SilverSurfer]

Government Has Shut Down 18 Times Since 1976
http://www.zerohedge.com/contributed/2013-10-01/government-has-shut-down-18-times-1976

[eddyimano]

Cool

[xero90]

So go short or wait for ZSL to hit 90s+ again then short old ZSL -- hear u, there's a gap there too. Also, add to that position if you can that I mentioned. Regards -xero

[eddyimano]

One guy says if gold doesn't hit $1178 by oct 3, it will drug till End of January next year, and it will test $1178 anyway, then it will go back up and get there all time high and more. Don't go in yet!

[xero90]

Gotu. Sorry you have the free membership, I did not realize that until just now. So you think the gov will reopen late tomorrow. I think big-O doesn't care and wants his dam o-care crap to kill us. Let's see.

[eddyimano]

I got only $0.0002. Fiscal cliff coming even though I don't believe government shout down.

[xero90]

wondering is I can snag some high ZSL if this baby shuts down... EOM

[xero90]

going for another shot (short it!)

[zsvq1p]

No..

I am in several divvy type things..

[xero90]

thank giff, you were not short I hope? EOM

[zsvq1p]

nice call...

[xero90]

weeeeeeeeeeee

[xero90]

oh yeah EOM

[xero90]

hmmm top prediction was 80ish, only 1 unit off...

Now the key here is where does zsl bottom next; I'm thinking somewhere in the mid 50s