Volume Dropping in Inverse ETF's [Archive]

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etftalk

04-09-2009, 12:30 AM

Volume Dropping in Inverse ETF's. Contrarian signal?

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JTH

04-09-2009, 02:34 AM

I'm not sure what to make of the decrease in volume, because I've only been tracking FAZ as of late. Problem is that FAZ really doesn't have much history to go by :(

momac

04-09-2009, 02:58 AM

I vote contrarian sign. Time to load up????

alevin

04-09-2009, 03:14 AM

Dunno, JTH, dunno. Maybe people are also figuring out 2 and 3x ETFs have too much slippage to fit their trading reaction-times and are starting to go back to traditional shorting or going to single inverses instead. Guess I'd be looking at behavior of the single X inverses that correspond to the 2x, 3x models and see if similar drawdown in volume-similar pattern would be indicative of change in trend upcoming-maybe.