Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
It never fails to amaze me. How quickly the mood swings from despair to euphoria to despair to God knows what. Like an addict the market mood swings violently between utter joys to ultimate sadness.
This pair of charts kind of encapsulates 2011 in a nutshell.
Very bearish folks might want bought ultra-bearish TWM at the beginning of the year. They are staring at a loss of over 20% now, in spite of some very hopeful moments.
So the bulls have had a great year, then, right? Not so fast. Here's UWM, the ultra BULLISH instrument, and the mirror image of TWM, with a similarly nasty loss.
So this proves leveraged ETFs are for suckers, right? Well, not necessarily. In a market with any decent trends, they can work well. But the above two charts sum up how getting jerked back and forth is especially devastating to such instruments.