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Why is BBUS down 8.5% today when the US move didn’t correspond to this at all last night?
BBUS - BetaShares U.S. Equities Strong Bear Hedge Fund
- Thread starter mcgrath111
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Did you include the distribution (div) that was paid yesterday?
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My pick for stock tipping this month. With the US increasing interest rates and inflation still out of control, might be a dip in the market for a while yet. We need to see inflation reducing to turn the market around.
Iggy
Iggy
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BBUS is a tricky one to trade short term as it's open when it's underlying market is closed. This creates the many opening gaps that we see on the chart. The open price includes the overnight price movement in the US market. If the US market has a down day then BBUS will gap up on the next open. BBUS can move a little more during its trading day if the US index futures move significantly during the ASX trading day.
Trading this profitably in the short term is an impossible task as we're always going to be a day late. We can get lucky by anticipating the US movement but this is gambling.
I'm currently trading BBUS to gain some experience in how to use it. I'm trading it with a bearish medium term outlook of the US markets. It's not a short term outlook. Since my bearish view is medium term (weeks/months) there's no need to be exact with the timing of my entries and exits. I'm allowed to be a day or two late with my execution.
I also think it may help to scale in and scale out of a position in BBUS and other US ETFs. Similar to dollar cost averaging in and then out. I didn't scale in with my current position and this has left me underexposed as the price went higher. I was concerned about timing it perfectly. I shouldn't have been concerned by this and just scaled in when I realised the opportunity was there. I've sold half to grab some of the gain and I'm waiting to either buy more if the US tanks again or sell out if the US continues to rally. My
Trading this profitably in the short term is an impossible task as we're always going to be a day late. We can get lucky by anticipating the US movement but this is gambling.
I'm currently trading BBUS to gain some experience in how to use it. I'm trading it with a bearish medium term outlook of the US markets. It's not a short term outlook. Since my bearish view is medium term (weeks/months) there's no need to be exact with the timing of my entries and exits. I'm allowed to be a day or two late with my execution.
I also think it may help to scale in and scale out of a position in BBUS and other US ETFs. Similar to dollar cost averaging in and then out. I didn't scale in with my current position and this has left me underexposed as the price went higher. I was concerned about timing it perfectly. I shouldn't have been concerned by this and just scaled in when I realised the opportunity was there. I've sold half to grab some of the gain and I'm waiting to either buy more if the US tanks again or sell out if the US continues to rally. My
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Sticking with it again in the 2023 tipping. It served me well in the 2022 down market.
It is a geared instrument, hence should be treated with great care by stock holders.
There as a hedge again this year
It is a geared instrument, hence should be treated with great care by stock holders.
There as a hedge again this year
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I have popped a few shekels into BBUS as a way of shorting the entire US market.
mick
mick
greggles
I'll be back!
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Is BBUS the only way to short the US market using an ASX ETF? Or is something else available?
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Don't know, its the only one I used.
mick
