Blogs & Comment

45% gain slips by

Grrrrrr, I feel like saying. A hefty gain slipped through the fingers today. My leveraged ETF position, in the Horizon BetaPro 60 Bull Plus (HXU) fund, opened up 45% on the Toronto Stock Exchange this morning over Fridays close (Monday was a holiday in Canada).
The gain was due to the TSX 60 opening up 18% (HXU provides 2x the index return) and the ETF market makers apparently letting a 9% premium slip (in as the rush of buy orders likely overwhelmed their arbitrage operations at the open).
I knew I should have been watching the open in case there were some oversized profits to take. With world markets up 10% and more the day before, a big opening was a foregone conclusion. I even made a mental note to log on at 9:30 am.
But I got wrapped up with some work assignments and editing my wifes course assignment (its her fault, Im saying). By the time I looked at the clock, it was 10:30 am and by then HXU was downto a 20% gain. Too late, I thought. So I went back to work and did some errands. By the time trading closed today, the gain stood at 13%.
Note to readers: The HXU is in the explore part of a core & explore portfolio. I dont recommend taking large positions on short-term trades with leveraged ETFs.