Comments on: Trading The S&P/Case Shiller Home Index http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html Freshly squeezed market commentary & analysis Sat, 21 Nov 2009 19:11:04 +0000 http://wordpress.org/?v=2.0.2 by: Myron http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-55678 Tue, 13 Oct 2009 16:22:03 +0000 http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-55678 I'd much rather use the futures market for hedging. I don't see how an ETF is the way to trade this since about half of these 3x leveraged types go straight to zero. Buy puts when either ETF gets to high levels and you'll probably come out ahead. Here's a way to hedge using <a href="http://homeecblog.wordpress.com/2009/10/12/buying-a-home-in-todays-market/">Case-Shiller for homeowners</a> I’d much rather use the futures market for hedging. I don’t see how an ETF is the way to trade this since about half of these 3x leveraged types go straight to zero. Buy puts when either ETF gets to high levels and you’ll probably come out ahead.

Here’s a way to hedge using Case-Shiller for homeowners

]]> by: Pej http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-50417 Thu, 09 Jul 2009 09:50:12 +0000 http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-50417 Thanks Babak, this is a very informative post. Now I'll be able to speculate on the real estate prices (kidding ;-) ) Thanks Babak, this is a very informative post.
Now I’ll be able to speculate on the real estate prices (kidding ;-) )

]]> by: Babak http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-50341 Wed, 08 Jul 2009 15:24:49 +0000 http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-50341 Tom, these types of vehicles are still very new so both hedgers and speculators are trying to understand them better. Can you imagine how complicated it will get when or if they release a new 5 year security pair every year? Makes my head hurt to think of the kinds of complex trades one could put on. Tom, these types of vehicles are still very new so both hedgers and speculators are trying to understand them better. Can you imagine how complicated it will get when or if they release a new 5 year security pair every year? Makes my head hurt to think of the kinds of complex trades one could put on.

]]> by: Tom http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-50336 Wed, 08 Jul 2009 13:29:17 +0000 http://www.tradersnarrative.com/trading-the-spcase-shiller-home-index-2729.html#comment-50336 Your last comment is particularly apt. It wouldn't surprise me if these trusts end up being used primarily by traders and speculators instead of investors seeking to hedge exposure to housing prices. Odds are that these securities won't "track" the Case-Shiller index at all until close to the time that the trusts are set to expire. Your last comment is particularly apt. It wouldn’t surprise me if these trusts end up being used primarily by traders and speculators instead of investors seeking to hedge exposure to housing prices. Odds are that these securities won’t “track” the Case-Shiller index at all until close to the time that the trusts are set to expire.

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