~6979~
15 years ago
actually I think it will drop a bit further...
here is the slower version of ~TMV~ (~TBT~)...you can see my targets labeled (4c)...not that far away...it is at/around this level that I am thinking to load up on ~TMV~ & ~TBT~...again, this is all just my opinion & I could be dead wrong...the FED can announce that they will buy another trillion in treasuries, so anything can happen...
...btw,(correction) ~TBT~ is actually the 20 year T-bill,but as you can see,they move identically,just different speeds due to 2x vs. 3x...
Stock
15 years ago
they can do anything, can't they?
seriously, first 30 days can't short stocks (IPO rule) for retail.
I assume it applies to ETFs as well.
Quick check of the easy short validator here:
http://individuals.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=tmf&cntry=usa&tag=United+States&ib_entity=llc&ln=
Symbol: TMF
Availability: 100
Exchanges: BEX, IDEAL, CSFBALGO, DARK1, JEFFALGO, NITEECN, TMBR, LAVA, TRACKECN, DRCTEDGE, CBSX, EDGEA, ISLAND, ARCA, LEVELATS, MIBSX, ISE
~6979~
15 years ago
my honest answer to that is no...I say this because I dont think any 3x vehicles are designed for long term holdings because of the way the mathematics works...
...just my opinion,if you wanted to hold long term for your same reasons I would try ~TBT~ instead (2x 30 year T-bill vehicle) instead of ~TMV~...I would hold ~TBT~ as a core and position trade ~TMV~...
...another alternative would be to purchase ~TMV~ shares in 100 increments then sell covered calls as protection...the premiums are high,so your initial basis will be reduced,but again its advanced & your positioning must be precise...
...btw, I think you have the right idea,as I think interest rates will continue to rise...I just want to make sure you realize how dangerous these 3x's are...
...if you pull up the options of ~TMV~ & ~TMF~, youll see that they do have long term options,but if you notice, the strikes are extremely close to the money...its almost like they dont want us to purchase long term options on these ETF's...it really sucks because I wanted to load up on deep out-of-the-money puts on both...like strike-20's on both...
...they wont allow us to do that and they wont allow us to outright short the ETF's...we have to ask ourselves why...I interpret that as a sign to tread very carefully with these trading vehicles...
...this is all my opinion...I wish you luck...