Thursday, August 8, 2013

Going long the correlating ETFs?

So I'm checking the paired bull ETFs (to the inverse ETFs from the last post) and how they develop after the point of touching resistance to the point of the highest top. The numbers are approximations sinse I get them from looking at a daily chart where I can't see the exact high and low for the day.

BZQ - UBR -> 89 - 154, (gain 73%), 9 months

Shorting the inverse ETF would have given 39% during same period. Funny how the chart makes sense from a technical perspective when I draw a line between the touch of the resistance point and the highest point.

BZQ - UBR -> 66.50 - 111.50, (gain 69%), 3.5 months

Shorting the inverse ETF would have given 46%

SKF - UYG -> 23.30 - 106, ( gain 355%) 4.5 years

Shorting the inverse ETF would have given 95%

YINN - YANG -> 16.50 - 26.10, ( gain 37%) 3.5 months (It would have actually been underwater for a short while.

Shorting the inverse ETF would have given 50%

The comparison between going long the bull ETF and shorting the inverse (bear) is not entirely fear. I'm measuring through to peak on the bull ETF and then the performance during the same time period for the inverse. I should probably also compare peak to throug from resistance point to the lowest point o the inverse ETF. But for now this will have to do. If a position is going to be taken on the bull ETF the touch of resistance point is a pretty good entry point and unlike the bottom point in the chart the resistance point is more spottable and still close in price to the bottom point.

No comments:

Post a Comment