4 replies to this topic

[Harapa]

..else Bears are going to come back fiercely.
SSO has resistance ~ 108.77 and 110.16. I will be inclined to lock my profits for ST trade around this level.

[TTrader47]

..else Bears are going to come back fiercely.
SSO has resistance ~ 108.77 and 110.16. I will be inclined to lock my profits for ST trade around this level.

SSO is the ETF based on SPY. If I were you, I wouldn't use support and resistance on the leveraged ETF as it decays over time and is more based on the futures contracts that the fund managers use to reach their targets. Best of luck

[Harapa]

..else Bears are going to come back fiercely.
SSO has resistance ~ 108.77 and 110.16. I will be inclined to lock my profits for ST trade around this level.

SSO is the ETF based on SPY. If I were you, I wouldn't use support and resistance on the leveraged ETF as it decays over time and is more based on the futures contracts that the fund managers use to reach their targets. Best of luck

Thanks for your input.
Actually, SSO holds ~60% in equities and rest in SWAPs. In term of decay this is much better than many other leveraged ETF (whose holdings are entirely SWAPs).

[TTrader47]

..else Bears are going to come back fiercely.
SSO has resistance ~ 108.77 and 110.16. I will be inclined to lock my profits for ST trade around this level.

SSO is the ETF based on SPY. If I were you, I wouldn't use support and resistance on the leveraged ETF as it decays over time and is more based on the futures contracts that the fund managers use to reach their targets. Best of luck

Thanks for your input.
Actually, SSO holds ~60% in equities and rest in SWAPs. In term of decay this is much better than many other leveraged ETF (whose holdings are entirely SWAPs).

I stand partially corrected. Why wouldn't you still use the SPX or SPY for resistance and support as this fund wouldn't be likely to move against it?

[Harapa]

I stand partially corrected. Why wouldn't you still use the SPX or SPY for resistance and support as this fund wouldn't be likely to move against it?

I actually do. For this post I used SSO since it is least effected by dividend payout (as my real time data feed is not dividend adjusted).
OT: Based on trend lines drawn on ES, I see resistance ~1902 SPX.

Edited by Harapa, 22 May 2014 - 10:59 AM.