HXU

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.

HXU April 25 The opposite to HXD

Hamilton

HXU April 25

And here to finish it off is the HXU. We hoped to buy it at about 7 and then sell it at around 14, neither points were reached so we missed the boat (basically for not understanding the non-linear nature of these products). The idea was good, execution not so good.

HXU , HSU Betapro 2x denominated in Can $$$ March 13

Hamilton

HXU march 13

We have waited a long time for this one to get to $7-$6 and it just will not do it . If you look very closely it could be complete, hard to say, in any case should go up $5 to $ 10 in next big rally. A better choice night be the S&P HSU, same thing but on the S&P and a lot cheaper. It should have an additional little down, but enough on that. It is denominated in Can $$$ so no currency risk.

HSU March 13

HXU March 6 update

Hamilton

HXU march 6

For 4-5 months now I have been anticipating a level of $6 on the HXU. The chart above is on a log scale to “fit”the data a little better. Where I am wrong is that on the downside the moves get progressively smaller and consequently you do not go as far as you would expect on the inverse product ( this is the double up TSE). Anyway one can over analyze. There are a number of good reasons to by this at about $7 if it even gets there. I do not think there was a triangle but if there was we are pretty well under the apex. The size of 5 is about the same as one. We are down 50+% on the XIU (the “normal”counter-part to this one). The market is noticeably tired of being bearish etc. etc. Target, my guess, perhaps as high as $16. No guarantee of course.