Comments on: Tech Talk for Wednesday February 25th 2009

By: Judy

Judy — Thu, 26 Feb 2009 01:59:38 +0000

re: XEG and HEU
These ETFs have nearly identical 12 months charts. HEU is $3 and topped at $30 but XEG is $11 and had a similar price at the top. Should HEU be a better bet? I have never done this trade before. Could someone with previous experience, please, comment?

By: Kelly

Kelly — Wed, 25 Feb 2009 22:42:20 +0000

Thanks. H.Hunter

I watched HEU/HED, HOU/HOD. they are not suitable for swing trade. that’s why I am cautious to play with them.

thanks for the recommendation.(XEG)

Kelly

By: H.HUNTER

H.HUNTER — Wed, 25 Feb 2009 21:58:37 +0000

tO kELLY

XEG THE REAL THING that HEU/HED are supposed to mimic but do not. The Horizon offerings are okay for very short trending moves. Longer term (two weeks plus in their case) or with volitility added(and be sure to expect volitility) they do not perform very well. Trade calls and put on XEG to reduce risk and capital outlay.

The same caution should be used on HOU/HOD. There are some prue crude plays in the US but no idea if you want to go there.

By: Tom

Tom — Wed, 25 Feb 2009 20:34:57 +0000

Re: the comment above the chart for XJY “The Japanese Yen fell sharply against most major currencies” — I thought the Yen Index indicated the number of Yen per US$. If so, when the price falls, there are fewer Yen per Dollar, which means the Yen rises rather than falling.

By: Kelly

Kelly — Wed, 25 Feb 2009 18:38:10 +0000

HOU/HOD is the EFT on TSX for oil.
HEU/HED is the EFT on TSX for energy

is there any other mutual fund or stock we can choose to play?

thanks
Kelly

By: Canuck2004

Canuck2004 — Wed, 25 Feb 2009 16:08:08 +0000

Gold bear ETFs are starting to show signs of life… and looking interesting again…. seasonally speaking, gold usually gets progressively weaker into Spring and early Summer; more often than not.

Oil Bull ETFs are bottoming and starting to look interesting again for the seasonal play into May. Oil usually gets progressively stronger into Spring, more often than not.

Risk reward ratio starting to look good for these two plays. ETFs safer than an individual bet, until markets get back to normal.

S&P 500 seems to be holding into support around 741… so far, therefore I would expect a nice rebound soon… regardless what the polititians say. At this point, higher beta stocks will outperform. Bear market rallies can be very strong…. short covering an added boost.