Sunday, November 30, 2008

TRADE SET UP


Here is a stock that I have held for quite a while and am going to add more shares. GXDX has been trading sideways for about a year trading between $20 and $40. Yeah, that is a 100% range but this stock has held out despite the overall 40% decline in the stock market.


Here is my logic:

1. The ADX is below 25 which denotes a non-trending stock.

2. The slow stochastic (14,3) has just crossed 20 which is a buy signal in an non-trending stock.
3. $28 has acted as support for the past 3 months.
4. The 200 day moving average is still being used as support.
My target to sell is $38 and my stop loss is below $28.
Let's see how this one pans out.

Wednesday, November 26, 2008

BEST OPTION PLAYS FOR CURRENCIES

ETFs used to match forex pairs:
FXA
FXB
FXC
FXF

FXM
FXS
USD index. If you want to USD to rise, buy the UUP which stands for USD UP. If you want to dollar to decline, BUY the UDN which stands for USD DowN.

DBV

Other ETFs
QID - the inverse fund of the Nasdaq.
SH, SDS - inverse of the SP-500.
DOG, DXD - inverse of the DJ-30.
TWM - 2x inverse of the Russell 2000.
MYY, MVV - inverse of the MidCap 400.
INP - India
FXI - ChinaEWZ - Brazil
EWM - Malaysia
EWW - Mexico
EWT - Taiwan
ILF - Latin American
FXP - Ultra short China
EEV - Ultra short Emerging Markets
EWV - Ultrashort Japan
GLD - Gold
OIL - Oil
SLV - Silver
XHB - Homebuilder ETF


Check out this website:
http://www.futuresmag.com/NR/rdonlyres/D7445BBE-7872-44C3-B52E-3D5988AE2DE6/389189/ETFGuideMAR093.pdf


ETF Name Ticker Symbol
SPY
QQQQ
DIA
Retail HOLDRs RTH 6,221
Ultra QQQ ProShares QLD 5,802
Industrial Select Sector SPDR XLI 5,749
Consumer Discretionary SPDR XLY 4,093
iShares Russell 1000 Growth Index IWF 3,815
Consumer Staples Select Sector SPDR XLP 3,281
iShares S&P 500 Index IVV 2,981
Ultra S&P500 ProShares SSO 2,666
iShares Russell 1000 Value Index IWD 2,557
iShares S&P 100 Index OEF 1,980
iShares Russell 1000 Index IWB 1,280
iShares Dow Jones Select Dividend Index DVY 969
Rydex S&P Equal Weight RSP 841
Ultra Dow30 ProShares DDM 698
Vanguard Total Stock Market ETF VTI 517
iShares Russell 3000 Index IWV 508
iShares Dow Jones US Home Construction ITB 478
Vanguard Growth ETF VUG 390
PowerShares Dynamic Large Cap Growth PWB 359
Vanguard Value ETF VTV 273
PowerShares FTSE RAFI US 1000 PRF 220
Vanguard Large Cap ETF VV 204
PowerShares Aerospace & Defense PPA 200
Internet HOLDRs HHH 183
iShares Russell 3000 Growth Index IWZ 136
iShares Dow Jones US Consumer Services IYC 101
iShares Russell 3000 Value Index IWW 93
PowerShares Dynamic Large Cap Value PWV 93
iShares Dow Jones US Index IYY 75
iShares Dow Jones US Industrial IYJ 67
PowerShares Dynamic Market PWC 63
Vanguard Consumer Staples ETF VDC 63
Rydex Russell Top 50 XLG 57
Vanguard Consumer Discretionary ETF VCR 54
Mid Cap Equity Index ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
MidCap SPDRs MDY 5,966
SPDR S&P Homebuilders XHB 4,823
SPDR S&P Retail XRT 3,718
iShares Dow Jones Transportation Average IYT 869
iShares Russell Midcap Growth Index IWP 549
iShares Russell Midcap Value Index IWS 539
iShares S&P MidCap 400 Index IJH 531
iShares Russell Midcap Index IWR 334
PowerShares Dynamic Mid Cap Growth PWJ 229
Vanguard Mid Cap ETF VO 173
PowerShares Value Line Timeliness Select PIV 116
Ultra MidCap400 ProShares MVV 107
Vanguard Extended Market Index ETF VXF 76
PowerShares Listed Private Equity PSP 69
Vanguard Mid-Cap Value ETF VOE 65
Vanguard Mid-Cap Growth ETF VOT 56
Small Cap Equity Index ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
iShares Russell 2000 Index IWM 97,988
iShares Russell 2000 Growth Index IWO 4,780
iShares Russell 2000 Value Index IWN 3,354
iShares S&P SmallCap 600 Index IJR 2,025
Ultra Russell2000 ProShares UWM 539
Vanguard Small Cap Value ETF VBR 191
Vanguard Small Cap ETF VB 190
iShares Russell Microcap Index IWC 174
Vanguard Small Cap Growth ETF VBK 158
PowerShares Zacks Micro Cap PZI 94
PowerShares Cleantech PZD 64
PowerShares Dynamic Small Cap Value PWY 61
Equity Sector ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
Financial Select Sector SPDR XLF 97,439
Semiconductor HOLDRs SMH 10,285
iShares Dow Jones US Real Estate IYR 7,672
Utilities Select Sector SPDR XLU 5,725
Technology Select Sector SPDR XLK 4,002
Health Care Select Sector SPDR XLV 2,747
iShares Dow Jones US Broker-Dealers IAI 1,429
iShares Nasdaq Biotechnology IBB 1,390
iShares Cohen & Steers Realty Majors ICF 1,216
Regional Bank HOLDRs RKH 1,037
KBW Capital Markets ETF KCE 969
Pharmaceutical HOLDRs PPH 846
iShares Dow Jones US Financial Sector IYF 652
iShares Dow Jones US Telecom IYZ 499
Vanguard REIT Index ETF VNQ 445
iShares Dow Jones US Financial Services IYG 295
Software HOLDRs SWH 270
DJ Wilshire REIT ETF RWR 257
iShares Dow Jones US Technology IYW 254
SPDR DJ Wilshire Intl Real Estate RWX 235
iShares S&P GSTI Semiconductor IGW 219
Biotech HOLDRs BBH 217
Futures’ 2008 ETF Guide
These are U.S.-listed ETFs that traded more than 50,000 units a day, on average, the last three months of 2007 and also have a futures or options
contract based upon them. They are broken down by category and ranked by volume. For a fuller version of the table, visit www.futuresmag.com.
68 FUTURES March 2008
ETF Guide continued
Reproduction or use of the text or pictorial content in any manner without written permission is prohibited.
Copyright 2008 by Futures Magazine Group, 222 S. Riverside Plaza, Suite 620, Chicago, IL 60606
www.futuresmag.com March 2008 69
iShares S&P GSTI Software IGV 217
iShares S&P GSTI Technology IGM 191
iShares S&P GSTI Networking IGN 184
SPDR S&P Biotech XBI 165
PowerShares Dynamic Semiconductors PSI 163
Vanguard Financials ETF VFH 159
Telecom HOLDRs TTH 118
Vanguard Information Technology ETF VGT 103
iShares Dow Jones US Utilities IDU 91
iShares S&P Global Healthcare IXJ 82
Utilities HOLDRs UTH 79
iShares Dow Jones US Healthcare IYH 75
SPDR S&P Semiconductor XSD 70
iShares S&P Global Telecommunications IXP 62
iShares S&P Global Technology IXN 62
Vanguard Health Care ETF VHT 52
First Trust Dow Jones Internet Index FDN 50
Fixed-income ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
iShares Lehman 20+ Year Treasury Bond TLT 1,774
iShares Lehman 1-3 Year Treasury Bond SHY 876
iShares Lehman 7-10 Year Treasury IEF 314
iShares Lehman TIPS Bond TIP 294
Vanguard Total Bond Market ETF BND 213
iShares iBoxx $ Invest Grade Corp Bond LQD 152
SPDR Lehman 1-3 Month T-Bill BIL 136
SPDR Lehman Municipal Bond TFI 62
Currency ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
CurrencyShares Japanese Yen Trust FXY 322
CurrencyShares Euro Trust FXE 195
PowerShares DB G10 Currency Harvest DBV 183
Commodity-linked ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
Energy Select Sector SPDR XLE 22,532
Materials Select Sector SPDR XLB 10,872
United States Oil USO 3,501
Market Vectors Gold Miners ETF GDX 2,541
United States Natural Gas UNG 1,272
PowerShares WilderHill Clean Energy PBW 1,241
PowerShares DB Agriculture DBA 878
SPDR S&P Metals & Mining XME 622
PowerShares Water Resources PHO 562
PowerShares DB Commodity Idx Trking Fund DBC 506
SPDR S&P Oil & Gas Exploration & Prod XOP 250
iShares Dow Jones US Basic Materials IYM 249
PowerShares Dynamic Oil & Gas Services PXJ 228
iShares Dow Jones US Energy IYE 203
Market Vectors Steel ETF SLX 171
iShares S&P GSCI Commodity-Indexed Trust GSG 133
Claymore S&P Global Water CGW 105
SPDR S&P Oil & Gas Equipment & Services XES 76
Ultra Oil & Gas ProShares DIG 69
PowerShares DB Base Metals DBB 54
iShares S&P Global Energy IXC 54
PowerShares Dynamic Energy Explor & Prod PXE 52
Bear Market ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
UltraShort QQQ ProShares QID 32,147
UltraShort S&P500 ProShares SDS 19,607
UltraShort Russell2000 ProShares TWM 6,114
UltraShort Dow30 ProShares DXD 3,633
UltraShort Financials ProShares SKF 2,645
UltraShort FTSE/Xinhua China 25 Proshare FXP 1,585
UltraShort Oil & Gas ProShares DUG 1,177
UltraShort Real Estate ProShares SRS 1,061
UltraShort MidCap400 ProShares MZZ 939
UltraShort MSCI Emerging Mrkts ProShares EEV 368
Short S&P500 ProShares SH 256
Short Dow30 ProShares DOG 246
International and Emerging Market ETFs
Daily Volume
ETF Name Ticker Symbol (in 000s)
iShares MSCI Emerging Markets Index EEM 20,400
iShares MSCI Japan Index EWJ 19,548
iShares MSCI Brazil Index EWZ 15,293
iShares MSCI EAFE Index EFA 11,615
iShares MSCI Taiwan Index EWT 8,563
iShares MSCI Hong Kong Index EWH 8,014
iShares FTSE/Xinhua China 25 Index FXI 6,880
iShares MSCI Mexico Index EWW 3,959
iShares MSCI Malaysia Index EWM 3,548
iShares MSCI South Korea Index EWY 2,912
iShares MSCI Australia Index EWA 2,449
iShares MSCI Germany Index EWG 1,613
iShares MSCI Canada Index EWC 1,489
PowerShares Gldn Dragon Halter USX China PGJ 1,463
Vanguard Emerging Markets Stock ETF VWO 856
Claymore/BNY BRIC EEB 731
Market Vectors Global Agribusiness ETF MOO 569
iShares S&P Latin America 40 Index ILF 504
iShares S&P Europe 350 Index IEV 421
Vanguard European Stock ETF VGK 419
iShares MSCI Spain Index EWP 393
Vanguard Europe Pacific ETF VEA 347
iShares MSCI Sweden Index EWD 345
Vanguard FTSE All-World ex-US ETF VEU 309
PowerShares Intl Dividend Achievers PID 299
SPDR S&P BRIC 40 BIK 271
iShares MSCI South Africa Index EZA 253
SPDR S&P China GXC 224
DJ Euro STOXX 50 ETF FEZ 214
Vanguard Pacific Stock ETF VPL 167
iShares S&P Global 100 Index IOO 157

Wednesday, November 19, 2008

SELF-DIRECTED IRA

Funding a Real Estate Mortgage Case Study (copied from www.theentrustgroup.com website)

Northern Colorado Real Estate Investors GroupContact: Paul--Mammoth Property Management, Inc.Telephone: (970) 419-8245When: Last Monday of every month, 6:30pmWhere: Downtown Public Library, 201 Peterson St., Fort Collins

Northern Front Range Investors AssociationContact: Michele LarsonTelephone: (970) 214-3627When: 4th Thursday of each month, doors open at 6:30pm fornetworking, meeting at 7:00pmWhere: Windsor Rec Center, Windsor


Buying and selling real estate is certainly one potentially profitable way to invest the funds in a self-directed IRA, but it is not the only real estate-related investment strategy.
Our story begins with a real estate broker, Jack, who was working with a client to try to sell a $200,000 property. The property had been on the market for about one year. Jack had found a potential buyer, Emma, who placed the property under contract. Emma had lined up a loan for $160,000, but still needed $15,000 to fund the purchase. Her lender was not willing to increase the amount of the loan since Emma had not worked during the past two years. Jack was concerned that the deal was going to fall through.
Byron, also a broker, was an acquaintance of Jack’s. Jack was aware that Byron was interested in sound opportunities to loan money to fellow brokers’ clients. Byron had a self-directed Entrust SEP-IRA with a balance, at that point, of roughly $250,000. Jack brought Byron and Emma together, and Byron agreed to have his self-directed IRA lend her money. He was able to negotiate the terms of the loan directly with Emma, however the actual lender documents could only be signed by his IRA administrator on Byron’s behalf.
Byron offered Emma two loan options. One, a first mortgage on the property for $175,000, with a 30-year amortization, at a fixed rate of 7.825%. This was just a little higher than the bank’s current rate. The deal included a 1-point fee for the loan.
Alternatively, Byron was willing to complement the bank’s loan, if that is what Emma preferred. This meant lending her $16,000 for a second mortgage, with interest-only payments for three years. At the end of three years the loan principal would be due. Byron set the interest rate at 8%, with a $500 fee.
Keep in mind that Byron alone assessed the relative risk in making these loans. He also set the terms of the loans. He was well aware that his IRA administrator could not advise him on these matters.
Uncomfortable with balloon payments, Emma decided on Byron’s first option for $175,000. She negotiated with Byron to increase the loan slightly to cover the cost of the 1-point fee. Ultimately, Byron reduced the fee to ¾ point, and set the amount of the loan at $178,000.
With the parties agreed on the terms, Byron called his title company to have them prepare the loan documents, carefully instructing them that the lender was his SEP-IRA (Entrust, FBO Byron IRA.) He then contacted his local Entrust office to provide them instructions for funding the closing. He had them make sure that all matters regarding the loan were carefully finalized. This included making sure the loan was properly recorded, that the trust deed secured the note with the property, that insurance on the property was in place, and that Entrust FBO Byron IRA was listed as loss payee for up to the amount of the loan. His Entrust office then sent a wire transfer from Byron’s IRA for $176,665 to closing ($178,000 less the $1,335 fee).
Meanwhile, Emma had found a job, and was doing well. She proved completely reliable, consistently making her required payments. Per instructions, she made these payable to "Entrust, FBO Byron IRA," but she mailed them directly to Byron. Byron tracked the payments, properly noting both the interest and principal amounts, prior to forwarding Emma’s check to Entrust.
Byron did have the option of hiring a loan servicing company to handle the payments. The servicing company would have kept all the details for the loan, and handled reporting to the borrower. The loan servicing company would forward the payments to the IRA once recorded.Emma’s credit rating had improved so after six months Bryon decided to sell the note to another lender, whom we will call Plancomp, Inc. Plancomp evaluated the loan, which then had a balance of $177,245 and determined that the market rate for the loan was about 6 ¾. They agreed to buy the note at an interest rate of 7.125%.
Since the note was already paying interest at 7.825%, as Emma and Byron had initially agreed, the value of the note—$189,722—was more than its balance. The note purchaser sent a check to Entrust FBO Byron IRA, who then, at Byron’s instruction, assigned the note to Plancomp, and Plancomp promptly took over servicing the loan
Let’s review the outcome. Byron’s IRA invested $176,665, and received back $189,722 plus six monthly payments totaling $7,706, less expenses of $295 paid to Entrust for their administration services. This is a net gain of $20,469, or more than 11%, in six months.
Byron now has about $270,000 in his SEP-IRA and is only too happy to remind brokers to come to him if they have clients having trouble getting a loan.