Thursday, August 25, 2011

ETFs, Bernanke, and The Tooth Fairy: Profit Either Way From Jackson Hole Decisions; The Perfect Setup

Many are expecting Bernanke to save the world and engage an another massive 'kick the can down the road" exercise tomorrow, i.e, QE3.

As such, QE3 may already be built-into prices.  If Mr. Fisher is right, and Bernanke is not the tooth fairy, the market swill be disappointed, and prices will reflect this. If QE3 happens, then gold will resume its parabolic move. It's a perfect setup.

Here are straddles on popular ETFs, to profit either way, up or down. Computed with StraddlesCalc.

Given the volatility, massive moves are possible, and so are profits, as were our past straddles last month.

This is not advice. Options are dangerous and may cause 10% loss. Please do your own due diligence,.

Friday, August 19, 2011

As gold goes parabolic, gold and silver ETFs soar higher

We track gold etfs live here at Here is the latest:

There are several returns in the hundreds of percentage points.

Thursday, August 18, 2011

On Market Collapses and 4X Profits on ETF Straddles, IWM, FXY, USO

Here's the current update on the ETF starddles:

An ROI of +290%, is just about a 4X return, not bad.

With 1 day to go in August, that is pretty much over, so we now look at September.

Here are new straddles for September:

Saturday, August 13, 2011

Currency ETFs: Jim Rogers Says U.K and Other European Countries Should be Downgraded

Jim Rogers commented on his blog that the U.S. has been downgraded but countries like the UK have very high debt will have to be downgraded too.

"You can’t have the UK as triple ‘A’ and the US as not a triple ‘A’. You need to be asking S&P or Moody’s why they haven’t got around doing that. I don’t think, the European countries deserve their ratings."

And he told te FT: that he would not buy the euro now but "I am certainly not selling it as I expect it to go up. If you want to buy a currency I would rather buy the dollar today of those two but I am not doing either".

The Euro has taken a little beating lately (down 4% since May) as investor ran for the US dollar, as bizarre as that sounds.

The ETF for the Euro is FXE.

We track currency ETFs live here.

Wednesday, August 10, 2011

Markets Dive Again: Huge Profits on ETFs

Here is the current situation with our ETF straddles:

Not bad at all.

Tuesday, August 9, 2011

Gold soars, so do gold ETF holdings: list

(Courtesy of Bloomberg)

We track gold ETFs live here.

Monday, August 8, 2011

The Stock Markets Are Collapsing: Relative ETFs, Which One To Buy?

Multi-year view of SPY:

Looking for ETFs that might potentially recover faster?

QQQ was obviously due to fall the hardest. Whether XLF, i.e, the banks, can recover faster is a tough proposition.

Wednesday, August 3, 2011

Big profits post debt-ceiling mess through ETF options

This is an update from our July 27 post. Here are the results, from this AM.

Our favorite ETF for straddles, IWM,  met expectations, and shows a profit of +80.50%. GLD is 2nd, at +24.5%. FXY is near break even: