SPXU And UPRO: Patience And Reasonable Expectations Are Key To Trading Leveraged ETFs

By Jack Holland:For investors who are trigger happy and have the habit of pulling out of winning positions on the ProShares UltraPro Short S&P 500 ETF (SPXU), ProShares UltraPro S&P 500 ETF (UPRO), or other leveraged ETF positions prior to full appreciation, or of chasing stocks that are sitting

Michael Johnston submits:ProShares, the issuer responsible for pioneering leveraged and inverse ETFs, has filed prospectuses for 16 new funds. Expansion is nothing new for ProShares–the company has launched a handful of new ETFs over the last year–but the filing was interesting because it detailed plans for 300% leveraged ETFs.

By Jack Holland: For the SPXU, rebalancing appears to be keeping this fund in lock step with the S&P 500. The chart above shows the SPXU tracking just as it should be. I keep reading warnings that leveraged ETFs rebalance every day, which can erode the position. The only thing I see eroding a position in the SPXU is whether or not the S&P 500 happened to close below the investor’s entry point into the position, no different than the expected behavior on any other stock in the market.

Charles Schwab (SCHW) has recently cut the commission rates for online trades of equities and non-Schwab exchange-traded funds regardless of the retail investor’s account size and trading frequency.

After AT&T somehow convinced the U.S.

Trefis submits: E-Trade (NASDAQ:ETFC) was recently fined $200,000 by the Dubai Financial Services Authority (DFSA) for failing to ensure the implementation of various anti-money-laundering controls. [1] This minor setback for the online brokerage firm should make it and its competitors, i

Not even an Egyptian uprising could derail the stubbornly bullish market.  After an initial spike in oil prices, and a one day retracement for broad equity indices, last week was “back to normal” for the buy and hold crowd.

By Geordy Wang: Buying stocks, selling stocks, shorting stocks. Playing options, hedging, going to cash. Buying a brick of gold and hiding it underneath your bed. In turbulent times like these, everyone and his grandmothers have advice on how to profit from the insanity in the market, including me.