Zeev's Turnips Patch-No Politics (ZEEV)

[ChartReader]

connor26: observations UCO vs SCO (vs USO)

I can tell you that with respect to "benchmark index", USO (2X long) and SCO (2X short) appear to be in EXACTLY PERFECT balance (-5.46% and +5.38% respectively).

See comparison chart:

http://www.google.com/finance?q=INDEXAMEX%3ADBOLIX.X+DJAIGCL+UCO+SCO+DXO


However--DJAIGCL index is down about 4%.....so moves in BOTH UCO and SCO should be greater.

I SUSPECT has to do with fact that today (Friday) is "5th and FINAL day" of the "monthly roll" to next month's contracts:

"ProShares Ultra DJ-AIG Crude Oil seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Dow Jones—AIG Crude Oil Sub-Index.
The Index consists of futures contracts on crude oil only.

The DJ—AIGCI rolls its contracts over the course of 5 consecutive business days, starting on the 6th business day of the month. Each day, 20% of each futures position that is included in the month’s roll is rolled. Not all contracts are rolled every month."


I'll try to do some calculations later.

--ChartReader