Rules: 1. Selection must be made prior to the opening bell on the first trading day of the week. 2. Selection may be changed up to the opening bell. 3. Starting price is the opening price on first trading day of week. 4. Ending price is closing price on last trading day of week. 5. No options or complex trading vehicles. Only stocks and ETFs.
To enter the game: List your stock's symbol, Long or Short, Company name, what the company does and why you like the selection.
Congratulations to last week's winner -- SlowbutSure
Will go with CMFO (Long) - China Marine Food Group, LTD. It's cheap and lagging its peers, so maybe a little catch up this week. China Marine Food Group Limited is engaged in the business of processing, distribution and sale of processed seafood-based snack foods, as well as the sale of fresh and frozen marine catch. The Company is a holding company whose primary business operations are conducted through its direct, wholly owned subsidiary, Ocean Technology (China) Company Limited (Ocean Technology) and its subsidiaries, Shishi Rixiang Marine Food Co., Ltd. (Rixiang), Shishi Huabao Jixiang Water Products Co., Ltd.(Jixiang), Shishi Huabao Mingxiang Foods Co., Ltd. (Mingxiang) and Shishi Xianglin Trading Co., Ltd. (Xianglin). Its frozen processed seafood products are sold to both domestic and overseas customers. Its marine catch is sold to overseas customers and distributors in Fujian, Shandong and Liaoning provinces, some of whom directly export the marine catch to South Korea and Taiwan. On January 1, 2010, Mingxiang acquired 80% interest in Shishi Xianghe Food Science and Technology Co., Ltd. (Xianghe).
UCO long I'm trying a 2X oil; positive bias. I think this stuff in the Arab world is far from over, and is likely to worry (if not actually affect) the oil market. There is the possibility that the Shiites in Bahrain might cross the causeway into Saudi Arabia. I'd like to see it move into the Persian world as well -- Kuwait had some rumblings this last week, and I probably refuse to kick the bucket primarily to wait and see the downfall of Iran. Both of them are big producers. All of which might raise the price of oil significantly. UCO is also sitting near the bottom of its short-term trading range.
I was tempted to go with XIN again, as I don't think its run is over despite the Chinese raising the reserve requirements for banks last week.
Disclosure: I bought UCO a few days ago. I also own XIN.
"Double, double toil and trouble; fire burn and cauldron bubble."
Last Edit: Feb 19, 2011 12:49:42 GMT -5 by yclept - Back to Top
I think UCO is going to have a pretty big gap-up on Tuesday open. That's bad for my contest pick, but good for the real money position I bought on 2/14. I'm tempted to choose another stock for the contest, but in this unsettled world news.blogs.cnn.com/2011/02/21/live-blogging-north-africa-middle-east-protests/, I don't know what that would be, so I guess I'll stick with the UCO on the chance that it'll gap up and then keep running. I'll be watching the real position carefully and am willing to take the money and run on any sign that either side is clearly winning the Libya struggle. I'm sure it sounds callous, but my stock position is almost certain to improve so long as they keep shooting each other. I didn't create the situation. Hell, if it was up to me we'd have sent a sniper to visit Gaddafi back in '86 instead of bombing his infant daughter. That was Reagan for you, send a bomb to do the job of a bullet, and hit the wrong person while you're at it.
Post by architecto25 on Feb 22, 2011 7:56:49 GMT -5
AREX Approach Resources, Inc. (long) Stock has had a good run; more ?; or topping ? Independent energy company engaged in exploration, development, production & acquisition of unconventional natural gas and oil properties in U.S., British Columbia. They're located in Ft.Worth, Texas Closed Friday at $32.48 & made a new 52 wk.high at $33.8899 For you'alls information, this pick made by that old, ancient system ( symbols on a wall & throw a good dart....... LOL)
my trading rules are very boring.... they clearly don't trade big gaps as we're going to have this morning.... sitting on ones hands is not an option for this game... however with real money that's exactly what i'd do.... if i were lucky enough to be long Yclept's UCO or long USO i would watch and maybe take some profits at today's open..... short TQQQ in pre-market TQQQ is already down 3.6%, so this a may be a super dumb play. stockcharts.com/h-sc/ui?s=TQQQ&p=D&yr=0&mn=8&dy=0&id=p83815959002
Last Edit: Feb 22, 2011 8:20:13 GMT -5 by Deleted - Back to Top
Well, I sold the UCO. Should have dumped it right at the open as Will suggested, but watched for a little while and suffered the consequences of same. Still I got out at several prices between 11.83 and 11.84 having bought on 2/14 at 10.83 -- a bit over 9% in just over 4 trading days -- reckon if I end up in the poorhouse it won't be from trades like that! I also bought some QLD at 90.6. I don't expect to own this very long -- may well sell before the day is over.
But don't you have to pay your broker interest on the value of the stock you're short?
almost my all of the years that i've been trading (over 40yrs.) .... i believed as you wrote, "don't use margin" "don't pay any interest"... however the resent training and mentorship has taught this old dog a new trick.... if you know for sure that your win-rate will average somewhere between 60 and 65% and that your risk/reward ratio is always in your favor.... use all the margin you can get, pay any interest charges and never worry about the tax implications of your trades.... P.S. i always have too much cash and don't generally use margin, i have a hard time finding enough equities that meet my programs special requirements to trade them...
Last Edit: Feb 22, 2011 14:42:28 GMT -5 by Deleted - Back to Top
Post by 2kids10horses on Feb 22, 2011 21:53:58 GMT -5
Oh, I get it. You are talking about the cumulative effect of the "negative compounding" that occurs in the leveraged ETFs.
The period that you gave the graphs for was a largely uptrending period. More days were up days than down days. Positive compounding of the results makes the return on the Long Leveraged ETF be more than triple (since we're talking about a 3x ETF) the return on the base index. The short leveraged ETF goes down during this period, but the compounding doesn't magnify the return.
However, if the overall trend been down, the Short leveraged ETF would have the compounding effect work in it's favor, and it would have gone up more than the Long Leveraged ETF went down.
I think what I'm trying to say is I think the Long Leveraged ETFs work better when the market is going up, and the Short Leveraged ETFs work better when the market declines. Over time.
It hurts my head to consider shorting the Long Leveraged ETF when I expect the market to decline, and shorting the Short Leveraged ETF when I expect the market to rise!
I just try to get on the right side of the market! Right now, I'm in cash.
This has been an interesting discussion, and I apologise to Rovo for hijacking the thread.
Well, it looks like I would have made more money if I had held the real-life position in UCO longer. But then I'd still be sitting under the sword like Damocles, wondering when that single horse tail hair would slip or break. Being out of that trade with money tucked safely away is just fine by me!
Last Edit: Feb 23, 2011 20:52:17 GMT -5 by yclept - Back to Top