Posts filed under “Index/ETFs”

Dow / Gold Ratio

A few interesting Gold discussions lately (See chart below)

Also, see Eddie Elfenbein’s Central Bank Gold Sales Began 10 Years Ago This Week: Has it Worked?

Via Chart of the Day:

“Today’s chart presents the Dow divided by the price of one ounce of gold. This results in what is referred to as the Dow / gold ratio or the cost of the Dow in ounces of gold. For example, it currently takes 9.2 ounces of gold to “buy the Dow.” This is considerably less that the 44.8 ounces it took back in 1999. When priced in gold, the Dow is down 79% from its 1999 peak and the scale of the current two-month rally has not distinguished it from the many bear market rallies that have occurred over the past decade.”

20090508

Source: Chart of the Day

Category: Commodities, Index/ETFs

GM: Out of the Dow

We finally get the answer to the question we have been asking since 2007: When will GM get kicked out of the Dow? The editors at Dow Jones are now hinting what everyone else already knew: GM is going to be replaced in the Dow Jones Industrial Average — and replaced sooner rather than later….Read More

Category: Index/ETFs, Markets

Bianco: The Dow is Distorted

Bianco: The Dow is Distorted January 21, 2009 James A. Bianco, CEO of Bianco Research, LLC Comment – The Dow Jones Industrial Average (DJIA) is a price weighted index. The divisor for the DJIA is 7.964782. That means that every $1 a DJIA stock loses, the index loses 7.96 points, regardless of the company’s market…Read More

Category: BP Cafe, Data Analysis, Index/ETFs

Mutual Funds — Down, Down, Down

Average decline in diversified mutual funds in 2008 was 40% and the outlook for 2009 is unclear.

1/12/2009

Category: Index/ETFs, Investing, Video

Here Comes the Commodity Index Rebalancing

The major commodities indices are being rebalanced, and I am forced once again to question their timing. Recall the last major rebalance: At the time, I had been challenged by Larry Kudlow to find a smoking gun for the sudden 2006 collapse of Oil prices a month or two before the mid-term election. That challenge…Read More

Category: Commodities, Energy, Index/ETFs, Markets, Politics

ETF Mayhem

> No, Cramer isn’t behind this — they are merely paying distributions of dividends. >

Category: Index/ETFs, Markets

Fed Fighting Deflation

Here is the money paragraph: The focus of the Committee’s policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve’s balance sheet at a high level.  As previously announced, over the next few quarters…Read More

Category: Bailouts, Federal Reserve, Index/ETFs

How to become Ultrabroke

Mark McHugh is a financial professional and former associate of a large investment firm.
He provides fee-based financial planning and tax preparation services in the Philadelphia area.

Editor’s Warning: Although Mark McHugh shares a surname with a respected contributor to The Big Picture Café, we’d like to state for the record, that Mark doesn’t know Jack.

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Are You getting ETF’d?

Objective: UltraShort Blah-Blah ProShares seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Blah-Blah Index.

Remember when you first heard about these leveraged ETF’s? That little part of your brain that actually wants you to survive started flailing its’ arms saying, Hold on there, Chief…. Double the gains?…How does this work?…How much fees and expenses?…Can this possibly work?…Remember? And you said, “Shut-up brain, I know what I’m doing.” Double your pleasure, double your fun, double your risk of cardiac arrest while just sitting in front of a computer. Now look at you, after a handful of “Plaxico” incidents, trying to externalize the whole thing.

Real men don’t read prospectuses, I always say. So when the eggheads at ProShares (and others) offered to warp time and space just for me, I was excited. Now, thanks to the recent performance of the SRS (ProShares Ultra-short Real Estate) and URE (ultra-long), I believe I’ve discovered a wormhole to a whole new dimension of excitement.

Take this past Monday, for instance:

While not able to understand to understand the Theory of Relativity, I can multiply by 2 (and subtract). Is a couple percent off target anything to be concerned about? The difference amounts to about $0.13 for URE holders and about $4.35 for SRS longs. I’d multiply that by the number of shares outstanding, but the only data I can find (MSN) says there are 8m shares of SRS outstanding (it traded over 15m today). And Yahoo says the expense ratio is 0.95% (sometimes the jokes just write themselves).

Read More

Category: BP Cafe, Index/ETFs, Markets

Mega-Bear Quartet

Doug Short overlays the 4 major bear markets of the past centruy onto one chart. Its a comparison of today’s S&P 500, the Dow post 1929, the Nikkei post 1989, and the NASDAQ after the tech bubble: > Chart via Doug Short Here’s another link that allows you to see the comparison by degrees. Very…Read More

Category: Index/ETFs, Markets, Short Selling, Technical Analysis

Stopped Out Longs, Possible Shorts

Dow is at 7997.28; S&P500 is at 806.58. Our cash position is back to 75%, we are still 25% long (including inverse funds). On this break, we could see (technically) a low of 681 on the SPX, Dow 7,100, and Nasdaq 1070. (There are deeper levels, but its too ugly to write now). Last week,…Read More

Category: Index/ETFs, Technical Analysis, Trading