Wow. I ran the ETF-Cashinator tonight to see what was happening and the volume on leveraged ETF’s is totally insane. Wall Street has turned into one giant casino. Check out the movement of EDZ and over 2x the normal trading volume today at 13 million shares vs average of 6 million! Almost any leveraged ETF (FAS, FAZ, QID, etc) has had huge increases in volume. When there seems to be a clear indication that the market is sliding or climbing, investors (i.e gamblers) pounce and load up on these ETFs and options. I have a sinking feeling in my stomach that this isn’t going to end well and the whole thing will get “ripped” apart under the stress and strain of ups and downs. It’s no different than a jumbo jet that goes through too many periods of compression and decompression until the fuselage rips open. Be careful.
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