HXD

HXD and HXU, Jan 2010

Hamilton

Some brokers will give you a list of 50 or 60 stocks that will do very well, from banking to mining, from wheat to uranium and from green to smokestack. All this is unnecessary, you really need only two to make the most, HXD and HXU. If done properly this will earn you a lot more than anything else. Back in late 2007 I argued for buying the HXU at $8 for a double, well before it even reached that price. Lately, and way too early I have advocated buying the HXD. Here they are, (U is UP and D is DOWN, both 2x- and , by the way , in some firms your broker will have to be option licensed).

HXU Jan 2010 HXD Jan 2010

Alternating between these two is all one needs to do, of course with the proper discipline. Now it is the turn for the HXD, it will probably pull back a little Monday from its high of 14.15 or so but it should reach at least $19/20 , and probable much higher. Then it will be the turn for HXU again. (HSD and HSU are equally good if you want to play the S&P on a currency neutral basis.

HXD, May 14 Also RFN and HSD

Hamilton

These are like the 3 musketeers, they are fighting the young ladies on the TV  , CNBC, BNN etc. programs that tell us what to expect next, always up. Nothing like a little lipstick etc. to get the guys in a buying mood, never mind that should the prompter shut down, that would be the end of that. Call me a male chauvinistic pig , if you wish,  but there is a good reason why they called my treasury operation Ham’s Harem. Lets just  go for the adage that it takes a thief to catch one. These three are all double down bear products: the HDX on Toronto, the HSD on the S&P ( but in C$ terms) and RFN . I am partial to HXD, simple because that one came out as a mutual fund long before the other ETF’s. As usual I was too early and could not wait for my $18 prediction to buy, I own it four dollars higher. On second thought it would seem to me that RFN is the best in terms of  bang for your buck, Here are the charts.

HXD May 14

HSD May 14

RFN May 14

The top one is the TSE, the middle one the S&P in C$ terms and the bottom one the S&P Financials in US $$$ terms. Price wise the bottom one wins hands down, but it is also the narrowest. It can easily go from 10 to 30 in no time. Because in Cnadawe are always going from one extreme to another ,I would still favor ( favour,  is how I spell this but my computer keeps telling me that I am wrong) the HXD. The real question is, is the rally done or are we at the midpoint.  I am hoping that Patricia Lovitt- Reed, Amanda, Lisa, Linda , Francis etc. etc. will let me know tomorrow. My guess, looking at RY , MFC etc. is that we are done for the moment. That may still mean that we are at a mid-point ( as with Ford) but must keep an open mind in case this thing is all ready in a stall, with ice on the wings. The upside trajectory, shown by the charts, may or may not actually happen, but initially I suspect this is the direction it will go

HXD May 4 Clearly wrong, too early????

Hamilton

Hxd may 4

Obviously I am wrong in suggesting the HXD was a buy. But the TSE itself is close to the nice round number of 10000 (and a logical retracement point) and as vectors this a-b-c is pretty well equal as it approaches $18. Note once again , the RSI and MACD have already turned. For the moment I am staying with the position.

HXD April 25

Hamilton

It is always nice to have an opinion on the market , but without an instrument to act it is of little use. So here is our old favorite HXD (do not forget 2X leverage and not good in a non trending market).

HXD April 25

When in doubt look at the inverse. Lovely a-b-c, ready to move up any moment. Here C is a 5-wave affaire, better even it has a 5th wedge to finish it in the next few days if not already. Most positions were sold at about $34, too early as it turns out but still profitable. Here is a second chance.