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Market Technician

12/03/08 6:24 PM

#39923 RE: 3xBuBu #39922

volume will be better than DGZ and DZZ someday because it's a powershares product.

GLL tracks Gold Bullion price, London p.m. fix... the others don't

a note concerning DB's DGZ and DZZ...

"Importantly, that index is tied to the value of an investment in gold futures, not gold bullion; the two prices do not always track perfectly. Moreover, like all commodity futures products, the notes incorporate the income futures investors would gain from investing their collateral cash in Treasuries. That will add approximately 5% of positive return to each index ... including the short and double short indexes.

Note that the Treasuries return will not be leveraged in the double up or double down funds; only the return of the futures contract will be leveraged.

The fact that the notes are tied to the monthly return of the index is noteworthy. That differs from the way the popular ProShares and Rydex leveraged ETFs work, as those funds are linked to the daily return of their benchmarks. That sounds like a nominal difference, but it is not: Because of the impact of compounding, doubling the monthly return as opposed to the daily return should allow these notes (in most circumstances) to stick closer to the long-term price trends of the underlying index."