No problem, we all have our theories, that is what makes a...

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swaggytrader

1,454 Posts.

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28/06/23

18:48

Post #: 68520080
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Originally posted by tinhat: ↑

Hi. Yeah I think I responded to the wrong post! @Sharetrader78 posted that he was buying SNAS. It sounds like you've been holding BBUS for a while. I was in and out of BBUS a couple of times last year and I think I traded SNAS once. With the SPX, it will be interesting to see if it finds support at 4,200. If it does that's quite bullish as 4,200 was rejected back in January. 3800 gave support in Dec '22 and March '23 so, if it does retest it, it will be interesting to see if it holds. I still say you are brave. I don't think the risk/reward of holding BBUS is worth it IMHO. Too much money sloshing around generally is not a negative for markets. The US budget deficit, I don;t know what it is standing at exactly but it's more than the Australian GDP I think! There is actually a mini-demographic boom in the household formation aged cohort of the 30s in the USA and Australia that I don't think people are factoring into their macroencomic outlooks.

This is the problem with taking a geared short position. You have to be right not just with the fundamental direction but also the timing. The inevitable is not necessarily imminent (to quote commodity investor Rick Rule). You can't just hold this geared short ETFs because the cost of continuously rolling over the contracts eats away at their value.

Good luck.

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No problem, we all have our theories, that is what makes a market. I hold a core position in BBUS because, if/when the big move comes you wont get them for a small premium, ive held once parcle from around the $8 mark, got a nice dividend and suspect I'll get another one before i sell. I've been through three crashes, and this one looks no different to the rest, other than debt levels are far higher. Meet you back here when they hit $25

Value at posting: 2,958.8
4 Upvote

0 Great analysis

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