They are leveraged ETFs that try to double the return up or down of the index. SSO is S&P DDM is DOW 30
Oh, I'm not saying there won't be another crash. What I'm saying is that if one happens, it will be a while, probably months, before it does. I'm saying this bottom is over and done with. We were supposed to break out to the downside, and we didn't. We'll probably see a correction tomorrow .... no way you shoot up almost 10% and not see a correction, but for now, I think the bears have returned to their caves. Those who try to sell their long term positions into the rally will probably live to regret it. I'm not declaring the end of volatility -- it will take a good while for volatility to come down. I don't think we're out of the woods as far as the big picture is concerned either -- this recession is going to be a fairly long and painful one. Just don't hold out your hopes anymore waiting for another leg down next week.
I don't think you looked hard enough: http://www.proshares.com/funds Click on each fund name for detailed information.
While looking into Greenlight Capital, I found a story about an IPO that Einhorn did in Spring 2007. <b>Lehman Brothers</b>, USB and Citicorp were the brokers sponsoring/underwriting it. Greenlight Capital IPO <i>Last update: 2:21 p.m. EDT May 23, 2007 NEW YORK (MarketWatch) -- Greenlight Capital Re Ltd. (GLRE) plans to offer 10.25 million shares at $16-$18 a share in a bid to raise about $174 million in its initial public offering with Lehman Brothers, UBS Securities Inc and Citicorp Group. David Einhorn, who manages the $4 billion Greenlight Capital hedge fund firm, serves as chairman of Greenlight Capital Re. The company said it'll manage its investment portfolio according to a value-oriented philosophy, in which it takes long positions in perceived undervalued securities and short positions in perceived overvalued securities. Einhorn had pledged to buy $50 million of the company's Class B shares at the IPO price.</i> Here is the Greenlight Capital letter that they sent out on October 1, 2008 Greenlight Capital Letter Some of his criticisms of other companies four weeks ago are amusing now that Greenlight has been stumbling lately.
So why is Apple a good buy with a P/E of almost 20, when other tech companies that have gotten crushed lately, like HP, Dell, and IBM have P/E ratios in the 9 to 11 range? I can hardly believe Dell is trading at 9x earnings.
Well, shouldn't it trade at about 11 or 12 x earnings like its competitors? Dell historically has been a golden child and gotten a pass on a lot of its earnings results. Its almost always traded up in the 15-17x range. Maybe people have figured out their model is not what it used to be or something. The one I think is undervalued is HP. Mark Hurd continues to strip out costs and continues to grow both revenue and margins since he took over.
I think people assume HP and Dell are actual competitors of Apple... they aren't. Apple really has no competitors in the "PC" market. You either want to try an Apple computer or you don't. If you want an Apple, you go to Apple, whereas in the PC realm, you want a PC and ask yourself "who among the 5 bajillion PC makers do I choose?" PC makers compete against themselves. Apple competes against itself and it does it well on the ticker by sandbagging every earnings so they can blow past them on the next go-round. BTW, Dell has been getting obliterated by poor earnings the past few quarters. The days of them being a "golden child" during earnings season are gone. I got burned by one of those earnings calls back when they were around $27 or so and it tanked after-hours. I swore off the stock. All this being said... I'm moving my stops up because this run-up was way faster than I expected...
I think that if you hold it until after this cute little rally, in a week or so it will be back up when the market comes back. I'm long on DIG right now and still short with SDS, with a much larger position in SDS. I couldn't help buying DIG with oil up so much today and the market down earlier.
Yeah I jumped in on SDS a little before the announcement...figure there should be some solid profit taking before Friday.....if not later today...
Amazon makes me scratch my head... didn't take much of a hit after lowering their forecast, and its been going up ever since. P/E of 39+ now.
Where do you guys normally get your research from? Like you know the stock prices will soar if a company acquires a bunch of shares from another company or merges with someone. I want to find out about this stuff in advance so I can take advantage of it. Right now, by the time I see articles about mergers, the price of those companies has already reached its peak for the most part.
Kinda had the feeling that was the case. Otherwise it would be too easy. But how do you, as a day trader, anticipate a drop/spike in the first place? It can't just be "gut feelings". There has to be some sort of intuition going on here.
