HXD. Horizons BetaPro TSX 2x bear.

HXD may 21 2011

This is our favorite instrument. $8 was always an interesting  point as that is where the inverse HXU traded at the lows in March of 2009, see below;

hxu may 21 2011

A difference of only $0.08, and it has now held for the better part of two  months. And the HXU did a fairly straightforward A-B-C, which, by definition , is a corrective move. I think the time has come (or passed already) to buy the HXD. even at today’ price of about $8.65 or so. The Fed etc.etc. can not continue this shell game. The simple reality is that the world has mis-allocated roughly 3 trillion dollars or more, perhaps a lot more. By kicking the can down the road time is won but the question remains – as always – who is going to pay, bondholders, equity holders or taxpayers. Inevitable there will be a very serious headwind when we find out.