Its been a very long time since I have contributed to this thread(being one of the original posters... way bach in 2015).
I have just spent about 30mins reading some of the posts since; some very good 'tips'/advice given BUT Soooo much naive content as well. That concerns me but it is not unexpected in this "profession?" and on this forum.
My advice(I use this term loosely), as a Trader who has been both a short-term 'trader' and longer-term ETF holder of the main bull n bear leveraged ASX ETF's .... i.e.
GEAR and BBOZ, is if interested in trading them or using them as a hedging instrument, as they mainly meant to be, IS at the very least TO DO YOUR OWN RESEARCH ON TRADING ETF's ON THE ASX SITE before trading them.
Now to a few XJO verses BBOZ and GEAR performance comparisons since our major 2018L to 2020H and since ... using Charts to highlight these.
XJO ... The MOTHER Instrument ...
From the 2018L to the 2002H ... rose a whopping 33%.
In that same time frame
GEAR, the geared bullish ETF, rose 77%(i.e. within the expected 2 to 2.4% times the XJO range)so normal! However
BBOZ, the geared bearish ETF, fall
only 56% or 1.7% times the XJO fall(therefore not as much as the expected 2 t0 2.4% ratio)so a blessing there!
Interestingly, the comparison moves
since the (current and probable,) 2020H in the XJO, BBOZ has picked up the slack as the best performing ETF based the the 12.8% fall(so far) in the XJO. It has risen 34%(or at a ratio of 2.63% of the XJO fall) whereas GEAR has fallen 27%(i.e. still in line within the expected XJO ratio).
Now, if we look at the Charts more closely, another interesting fact emerges. Using the 2018L to 2020H ranges on all three instruments note how the XJO has retraced
50% of its range whilst GEAR has retraced
61.8% whereas BBOZ has only retraced just a smidgeon over 25% of its fall. You wonder why BBOZ has languished and not retraced at least the equivalent of the XJO OR has the XJO n GEAR over-reacted?.
Its also interesting that the retracements on both the XJO and GEAR are both
very good potential T.A. support levels ... I'm guessing that is why both have sort of stalled there. I did say, POTENTIAL, so they may be short lived though!
XJO Chart...
View attachment 2034826GEAR Chart ...
View attachment 2034829BBOZ_Chart...
View attachment 2034832Its my firm belief that we have seen the 2020H in the XJO(and probably the US Mkts) so, whilst I think we will see a rally soonish, I am comfortably "short"(via BBOZ n BBUS) and am looking for opportunities to add to that exposure and any reasonable rally in the XJO and SnP500.
