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1:4 Split market open on January 24, 2014....
Why has ProShares decided to split and reverse split the shares of these funds?
ProShares believes it is in our shareholders’ best interests to execute these splits and reverse splits to keep the share prices within efficient trading ranges, and seek to avoid share prices being too high or too low.
Splits help reset share prices to a range that helps maintain liquidity, especially if the price gets too expensive relative to other choices in the marketplace.
Reverse splits, in turn, may help reduce bid-ask spreads. For funds with a lower share price, bid-ask spreads represent a higher percentage of the transaction price than for higher-priced funds, which can increase both costs and volatility—even when the spread is higher. ProShares believes the reverse splits will adjust the share prices to a more cost-effective level for the Funds' shareholders, and therefore it is in our shareholders' best interest to do so.
gdl.. I appreciate your comments.
This is interesting fact.. This week, my employer (large $1.5 billion revenue company supplier to package goods) announced a price increase called it "inflationary" for the first time ever..
Looks like we are running out of some steam today.
OK.. looking to buy when WTIC drops in the $80's
1 year chart
http://scharts.co/1m2HWxu
Leb.. I think it is going to take a few years for this one to really get going.. I think you slowly accumulate and accumulate SYTE a little at a time and wait for the big payoff at a huge spike.. it might come in 2 years.. 5 years.. who knows.
Ok picked up a few shares.. Lets see it bust though.
Maybe here?
maybe a 15% gain.. perhaps
http://stockcharts.com/h-sc/ui?s=SPXU&p=D&yr=0&mn=6&dy=0&id=p12843253629
Quantitative Easing will eventually lead to inflation - Currently, we don't feel it so much because banks are now earning interest on excess reserves and have taking the same amount of money out of circulation as has been injected via QE.
Quantitative Easing is responsible for recent stock market highs - As soon as we begin to taper, the market will fall. When we stop tapering the market will rise. Regardless of how "complex" the details are, there is a causal relationship.
All good things must come to an end.. but when? I doubt this time around.. but we may still see by February a corrections.. who knows?
OK...
I am out of silver... I am shorting the S&P500 until I see the debt ceiling situation or feel it is going to be resolved.
http://investorshub.advfn.com/ProShares-UltraPro-Short-S&P500-SPXU-15675/
It looks like Silver did bottom huh?
At break even as today. I add more.
With budget talks coming.. Fed comments coming.. I still think the Market will not like the press at some point.
Are Democrats backing the GOP into another government shutdown?
By Jon Terbush
11 hours ago
Pelosi is ready to play hard ball.
After spending two months on the defensive over ObamaCare, Democrats are back on the attack. And with another budget deadline looming early in the new year, they're signaling that they're not about to let up — even it it means pushing Republicans toward another government shutdown.
Budget deal? Big obstacles, New Year's deadline Associated Press
Progress emerges in U.S. budget talks; Murray sees path to deal Reuters
Narrow Budget Agreement Comes Into View The Wall Street Journal
Dems, Obama, head into 2014 distant, determined Associated Press
Pelosi nixes budget deal without jobless benefits Associated Press
Senate and House negotiators are working toward a reportedly small budget deal that would undo some of the sequester, across-the-board spending cuts that have taken a bite out of the economic recovery. But believing the odds are tilted in their favor, Democratic leaders have suggested they may insist that an extension of emergency unemployment benefits also be part of a final deal.
"We cannot, cannot support a budget agreement that does not include unemployment insurance," House Minority Leader Nancy Pelosi (D-Calif.) said at a Thursday hearing. "It would undermine who we are as a country."
Pelosi later walked back her firm stance, saying that though she would prefer unemployment insurance to be part of the deal, "it could be separate from that." But the hard line, and the actions of other leading Democrats, nevertheless stoked the notion that the party is willing to play hard ball.
On the same day, the White House released a report touting the economic benefits of an unemployment benefits extension, and President Obama said the same in his big income inequality speech one day prior. Rep. Chris Van Hollen (D-Md.), the party's ranking member on the House Budget Committee, directly compared the cost of an extension to the estimated $24 billion the economy lost during the last shutdown — hardly a subtle message.
A senior Democratic aide, meanwhile, told The Nation's George Zornick that the issue was "still very much in the mix" of the budget talks between Sen. Patty Murray (D-Wash.) and Rep. Paul Ryan (R-Wisc.).
Congress authorized the Emergency Unemployment Compensation program in 2008, and has repeatedly extended it with steadily decreasing benefits. It's due to expire at the end of the year though, hence Democrats' concerted push now. And even though the House isn't known for passing Democratic-friendly legislation, Democrats think they have enough leverage to force the issue.
For one, any deal that raises spending above sequester-mandated levels would likely lose a swath of GOP support, which means Speaker John Boehner (R-Ohio) would have to seek out Democratic votes anyway. And the more Boehner needs to rely on Democratic votes, the thinking goes, the more concessions Democrats can demand.
Plus, Republicans are eager to undo the deep cuts scheduled to hit the Defense Department next year. Though pro-defense GOPers have quietly accepted the past cuts, the next round will cut deeper, so they're now "openly itching for a budget deal," wrote New York's Jonathan Chait, "as are the Republicans who have to actually draw up the cuts to domestic spending required by sequestration."
"The Republican dissidents, combined with Democrats, form a potential majority in the House in favor of undoing sequestration," he added.
Then there's recent history. Republicans ruined their party's approval rating by forcing the October government shutdown, and they're loath to repeat that catastrophe.
"A government shutdown is off the table," Senate Minority Leader Mitch McConnell (R-Ky.) said in October. "We're not going to do it."
Still, if the Democrats push too hard, Republicans could simply walk away, paving the way for another shutdown.
However, Boehner has said he would "surely entertain taking a looking at" a benefits extension, so there is at least a chance Republicans could go along with such an effort.
And there's always the possibility that all this noise will "turn out to be kabuki," wrote the Washington Post's Greg Sargent.
House Democrats are on record talking extensively about how the sequester is dragging down the recovery. So if Senate Democrats do reach a deal with Paul Ryan to replace it, and Republican leaders adamantly refuse to extend unemployment benefits, it could prove difficult for House Democrats to stand in the way of passing something easing the sequester. This would put House Dems in the position of making a very difficult choice. [Washington Post]
Democrats think they have an edge in the budget talks. We'll soon see if they truly intend to use it.
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...
Do I owe you 2.5% on profit made? or is this one free?
Do I owe you 2.5% on profit made? or is this one free?
got it... Now watch it go to 100 when I am out.. lol
90.60 fills the gab...
Tapering is the Key question....
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??
Good move.. What are you thinking right now?
This is what I am thinking...
Buy 110 shares a week for the next 11 weeks.
at a Risk of a 25% loss.. That means S&P could increase 8.3% from today till Feb 2014.. Making this ETF about $13 holding about 1380 shares at near first week in Feb..
If it can pop 60% because same reason as it 2011? perhaps rake a $10,500.
or perhaps running up to the debt ceiling fight the market won't like it..Perhaps if we get lucky along the way put in some stops? Humm???
Seems like this might be time huh?
Fed sends markets tapering message
Wednesday, 20 Nov 2013 | 5:47 PM ET
The Federal Reserve looks set to move sooner rather than later to taper back its bond buying, once more surprising markets that have been repeatedly confused about when the Fed will begin to step back from its extraordinary easing policy.
Treasury yields ripped higher Wednesday and stocks fell after minutes from the Fed's October meeting revealed that central bank officials felt that they could decide to start scaling back their quantitative easing bond buying at one of its next few meetings, depending on economic growth.
That immediately sent the yield on the 10-year Treasury above 2.79 percent, a level it was last at on Sept. 18, the day the Fed surprised markets by not moving to taper back its $85 billion bond-buying program. Since the strong October jobs report, markets have suspected the Fed could move as early as December though the probability appeared low.
"It probably was underappreciated that December may be in play, especially after some of the recent commentary we've had over the last couple of weeks," said Tom DeMarco, market strategist at Fidelity Capital Markets. "I don't think it is, and I don't think the odds are minuscule for that. If I had to try to put a number on that, I'd say the odds are significant but that's not my base case. ... I'm thinking more January."
"I would say on the margin, it brings forward tapering expectations by the market, although we still think December has a relatively low probability of seeing a taper," said Ian Lyngen, senior Treasury strategist at CRT Capital. "They'll have the December employment report but they'll still be in the midst of budget negotiations and a possible debt ceiling debacle in January."
The flow of economic data now becomes even more important, as the markets try to handicap the Fed's next move and whether it sees strong enough employment growth in the Dec. 6 jobs report.
"I think we're probably going to hang more on some Fed comments going forward, and I think the November jobs report takes on a little more importance as we try to get some clarity," DeMarco said.
There is a heavy dose of economic reports Thursday, including PPI and jobless claims at 8:30 a.m. ET. The Markit manufacturing PMI is released at 8:58 a.m. and leading indicators are at 10 a.m. The Philadelphia Fed survey is also released at 10 a.m.
"Today they got October retail sales and that was a pleasant surprise despite the fact it was during the government shutdown," said Zane Brown, fixed income strategist at Lord Abbett. Retail sales rose 0.4 percent, and showed improvements in automobile purchases but also other areas, like restaurants, furniture and sporting goods.
"It just shows the Fed was accurate in its interpretation there wasn't much impact form the government shutdown, and if it was, it was transitory," he said.
Brown said the Fed is still looking for sufficient evidence to move in December or January, and data like retails sales support the idea that the economy is making progress. "I really didn't think they were going to to do anything until March, but looking at these minutes and the economic data since they last met gives them the ammunition," he said.
Brown also said rates will now be under more pressure. "This is the beginning of a longer-term process that's going to translate to higher yields," he said. "We could get to 3 percent 10 years by March ... people are going to wait to see how aggressive they are."
DeMarco sees a higher range currently. "We're in a 2.60 to 3 percent range on the 10 year through the fourth quarter," he said.
Fed speakers Thursday will now get even more attention, including Fed Gov. Jerome Powell who speaks on over-the-counter derivatives at 9:45 a.m., and St. Louis Fed President James Bullard, who speaks on policy and the economy at 12:50 p.m.
The minutes also showed that Fed officials discussed how to distinguish between their intentions on the asset buying program and their forward interest rate guidance, which they want to emphasize once they start to taper bond buying. Fed Chairman Ben Bernanke, in a speech Wednesday, emphasized the separate paths of the programs and emphasized that the Fed could keep rates near zero well into the future.
"I believe they know what they're doing. They're in control. They're just at a juncture that is moving from where they were to where they're going and struggling a little bit to get there. Look, like you and me, it's not black and white," said Bob Doll, chief equity strategist at Nuveen Asset Management.
"It's gray and they're struggling with 'what do we do, when do we do it and how do we do it,' and that's the danger of this full transparency ... a transparency is great when you're trying to be very clear about something when you're in transition and don't know quite how to do it. It does leave the reader very confused."
Stock traders said while rising rates were a concern, the market was not really that bothered by it. "I would say yes to more volatility with the way Treasurys are acting, but the Vix is flatlining," said one trader. The VIX, the CBOE's volatility index was up 1 cent to 13.40.
But bonds are another story. "the Treasury market is tapering before our eyes," wrote Peter Boockvar, chief market strategist with Lindsey Group, in a note.