THE PRAGMATIC CAPITALIST » » HOW TO GO BROKE SHORTING BANKS

HOW TO GO BROKE SHORTING BANKS

25 April 2009 by TPC 3 Comments

We’ve been saying that you can’t short the banks here at TPC for over 3 weeks, however, volume has surged in the Financials Bear 3X ETF in a clear sign that the bearish bets on the banks continue to increase as the rally surges. In my opinion, this has been one of the primary fuels feeding the recent rally. The short covering in the banks has been almost comedic at times. Investors are so incredibly stubborn about shorting these names despite rampant government intervention.

Isn’t it funny how people hate the short sellers and blame them for everything on the way down and then no one talks about them on the way up?…Great video analysis here:

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3 Comments »

SoYouThink said:

This video isn't about shorting this is about using the 3x leveraged ETF. Levered ETFs re-leverage every day so that if you hold them for long period of time you are guaranteed to lose. Anyone who holds a levered ETF more than a day or two deserves to lose everything because they do not understand how they work.

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# 14 May 2009 at 2:43 PM

adsfasdf said:

What a crock of shit. The powers that be are trying to scare people out of the -3x funds. I wonder why…….

Aw, hell, I know why.

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# 14 May 2009 at 5:03 PM

adsfasdf said:

The problem with your post is that in spite of the fact that you're technically correct, I made a boatload of money last year holding TWM, SDS, SKF and QID for months at a time.

Thanks for your concern Mom. You play your book. I'll play mine.