Would You Buy This Stock?

phcpbl

Would you buy a stock whose chart looks like the one below?  It had a nice run but has pulled back quite a bit over the last couple of years.

The chart above is of the S&P/Case-Shiller 10-City Composite Median Home Price index.  MacroShares has been working on developing an ETF that tracks this index for what seems like years now, and today they finally start trading.  And yes, leverage is involved.  UMM tracks 3 times the 10-City Median Home Price index, while DMM tracks 3 times the inverse of the index.  Whether you want to use these as a hedge for your own home or speculate on the direction of housing, these ETFs now allow you to do it.  But if we get another big housing boom, the leverage on these things could take you on a wild ride.  MacroShares already had one of their inverse oil ETFs go to zero when oil shot up in 2008.  Whatever happens, these new ETFs will be interesting to track.

colderdown

Yes. But I will wait it downs to 90

phcpbl

UMM  O: 20.03  H: 20.08  L: 19.30  C: 19.60
DMM  O: 30.87  H: 31.02  L: 30.70  C: 30.90

风清扬

Yes. But I will wait it downs to 90
colderdown 发表于 2009-7-1 02:23

if you think it is going down to 90, why don't you buy put?

ychen222

可能还在下降段，就算在做底也刚开始，显然不能买入。

phcpbl

Today's closing:

UMM  14.00
DMM  36.47