In trading, I learned that the strongest becomes the weakest. I assess
that to the herd
migrating to the most greed and with all looking over
the same side of
the boat, it sinks.
The nice folks over at Bespoke
posted a year to date ETF performance
chart
http://seekingalpha.com/article/141654-leveraged-etf-performance-6-5-09
with
AGQ being the strongest ETF.
I'm a scale down buyer of ZSL, I thought
I'd run a pairs trade of ZSL/
AGQ
2X bearish silver and 2x long silver.
Here is a link to the ratio
charts.
http://stockcharts.com/charts/gallery.html?ZSL:AGQ
With
the ratio around .15 and a recent high of 1.24 that is a lot of
room to
run (700%).
That pair will eventually carve out a new high, since the ETFs
are
relatively new.
Kevin B. Bantz