MARKETS,Anybody even yet?

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dinghy
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Re: MARKETS,Anybody even yet?

Post by dinghy »

QQQ vs SQQQ. I pulled the chart back to a date when QQQ was at the same level as now. April 2021.

Image

SQQQ is -41%, consistent with SQQQ's tendency to lag its benchmark long-term. In the aggregate, SQQQ is an overall loser. My question is where does the money go? If SQQQ holders are losers, who are the winners?

It's not QQQ holders, because their performance only matches the benchmark (approximately). I'm not aware of any index ETF that outperforms its benchmark.

SQQQ achieves its leverage through swap contracts. Some Wall Street bank or other entity is on the opposite side of those trades. Are they the winners?

FAA
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Post by FAA »

Markets: +1.3%, +1.6%, +2.6%. I was +0.72% today. 86% winners. VIX -8.3%. What, me worry? Actually, yes. Usual bears are predicting doom and gloom. Must watch some TV to assess more sentiment.

dinghy
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Post by dinghy »

FAA wrote:
Wed Aug 03, 2022 2:10 pm
Must watch some TV to assess more sentiment.
I never watch, so wouldn't have any frame of reference. Personally, when I see the S&P +15% and QQQ +20% in 6 weeks, I become less bullish. If I owned any of those stocks, I would be trimming them back. Unless the gains were justified by some spectacular good news, such as a deadly pandemic that only affects politicians.

dinghy
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Post by dinghy »

Another rate hike for Brazil.

Image

Brazil has a 12% inflation rate, a little above the USA's 9%.

FAA
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Post by FAA »

I got in after the Jan/Feb sell off. Unfortunately, that was just another chunk, not the final one.

dinghy
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Post by dinghy »

You didn't do the pluses and minuses. :geek:

It's okay because the pluses weren't very plus and the minuses weren't very minus.

dinghy
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Post by dinghy »

Since last year, Brazil hiked rates from 2 to 14.

USA has been 2 or less for a decade and a half.

Image

FAA
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Post by FAA »

Markets: All +0.2%. I was +0.16% today. I'll take this kind of Groundhog Day.

FAA
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Post by FAA »

Cramer just broke down gold charts. Goldies may want to get on that must see 📺.

dinghy
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Post by dinghy »

I just watched the CNBC segment apparently from Wednesday evening. Cramer may have done more Thursday that I haven't seen.

He showed the COT investor sentiment data which is indeed bullish, but has been for many weeks already. He also presented an oil correlation chart, and identified GOLD (Barrick) as his favorite mining stock.

GDX was slow out of the gate Thursday, but surged to +5% before backing off to finish +3.5%. I don't know the extent to which Cramer is able to move markets with his recommendations, but he's off to a good start on this particular call.

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