Replies to post #2797 on Strategy Central

[sammy1024]

rich i got a buy signal from jack chan on march 24 on the gold sector. the profund for gold is up 29 percent since then.


just doing indexes is not the only way to do it.

regards

[Walkingshadow]

In theory, the CPCE should be better.

In practice, I find the CPC better.

Re the leveraged funds, I think it is important to simulaneously trade multiple markets that are poorly correlated because some markets will be chopping around while others are trending. So, while you may not do well in chop, that will be counterbalanced overall. It is extremely rare to see most markets chop around aimlessly all at the same time.

Also, if your analysis of market direction is wrong, you are unlikely to be wrong about everything at the same time if the markets are not well correlated (or better, are uncorrelated).

So besides equity indices, I like to include currency ($USD), the 10 year yield, commodities such as oil/gas or gold. Profunds has a 2x leveraged fund (UJPIX or UJPSX) that tracks the Nikkei long, and now they just added a short 2x Nikkei fund (UKPIX or UKPSX). So I will probably add that pair to the mix as well.

http://www.profunds.com/overview/newBody.asp?ID=899#a

WS