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Posts Tagged ‘CNBC Million Dollar Portfolio Challenge’

How To Trade the CNBC Million Dollar Portfolio Challenge (Part 4)

One key to success is to trade the current trends.  This is true for the volatility of the currency markets.  For those wanting to trade currencies but are not using FX trading, you can use the ETFs for all major currencies in the CNBC Portfolio Challenge.  The best market trend I have found so far is that the U.S. Dollar is rallying over the last month.  Use the PowerShares DB US Dollar Index Bullish Fund (UUP) to go long the Dollar.  This ETF is up 8% in the last month.  Of course, you want this to be a smaller position in your portfolio as the rally continues over the short-term.

PowerShares DB US Dollar Index Bullish Fund (UUP) is a separate series of PowerShares DB US Dollar Index Trust (the Trust).  The Fund’s subsidiary is DB US Dollar Index Bullish Master Fund (the Master Fund), a separate series of DB US Dollar Index Bullish Master Trust (the Master Trust).

The inverse trend is the Euros continued decline.  The ETF play is the ProShares UltraShort Euro (EUO) that is a super-short Euro play.  This ETF is only up a little over 4% in the last month.  However, if any countries in Europe default or increase their possiblilty of default then the EUO will be a great play as it is super short for the EURO.

Both ETFs, UUP and EUO are shown in the chart below.

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Also see these articles:

How to trade the CNBC Million Dollar Portfolio Challenge (Part 1)

How to trade the CNBC Million Dollar Portfolio Challenge (Part 2)

How to trade the CNBC Million Dollar Portfolio Challenge (Part 3)

 

Check out the Monthly Income Investing Plan here.

How To Trade the CNBC Million Dollar Portfolio Challenge (Part 3)

In previous posts, How to Trade the CNBC Million Dollar Challenge (Part 1), I discussed how to use leveraged ETFs to trade the market volatility. I discussed using two ETFs that track the S&P 500 but are levered to return twice (200%) of the daily performance:. (1) Proshares Ultra S&P 500 (SSO) and (2) Proshare UltraShort S&P 500 (SDS). In How to Trade the CNBC Million Dollar Portfolio Challenge (Part 2), we did the same with the NASDAQ 100 using ProShares Ultra QQQ (QLD and ProShares UltraShort QQQ (QID).

Today, we will add a new inverse pair trade using the volatile financial sector.  The Direxion Daily Finan. Bear 3X Shs (FAZ) is the short ETF.  The investment seeks daily investment results of 300% of the inverse of price performance of the Russell 1000 Financial Services Index. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index.  The inverse ETF, Direxion Financial Bull 3X Shares (FAS), is the long position for when the financials are moving up.  The investment seeks daily investment results, before fees and expenses, of 300% of the price performance of the Russell 1000 Financial Services Index.

The CNBC Portfolio strategy is to buy the ETF, FAS or FAZ, based on the movement of the the Russell 1000. At the market close on 10/4/2011, the market rallied in the last hour of trading. The FAS went from $8.60 to $10.20 in less than one hour.  This is an incredible increase of 18.6% in less than one hour!  In comparison, the FAZ went from $80 to $67, a decrease of (19.4%) during the same time.  You can see the amount of gain you can get from being in the right leveraged ETF when the market makes a dramatic swing up or down.  The chart below compares the FAS to the FAZ over the last 3 months.  As you can see, these ETFs move in exactly opposite directions.

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For your CNBC Portfolio, you should be invested in the SSO or SDS for one trade; the QLD or QID for your second pair trade; and the FAZ or FAS for your third trade. You can adjust these positions as necessary to stay with the levered ETF moving with the market direction for each index tracked by the pair trade.   This is an excellent trading strategy to win the Million Dollar Challenge and the weekly prizes.

How To Trade the CNBC Million Dollar Portfolio Challenge (Part 2)

In the last post titled How to Trade the CNBC Million Dollar Challenge (Part 1), I discussed how to use leveraged ETFs to trade the market volatility.  I discussed using two ETFs that track the S&P 500 but are levered to return twice (200%) of the daily performance.  The first ETF is Proshares Ultra S&P 500 (SSO) that is used to capture the UPSIDE movements of the S&P 500.  The pair of this trade is the Proshare UltraShort S&P 500 (SDS) that is used to capture the DOWNSIDE movement of the S&P 500 at twice (200%) of the daily performance.  Basically, you but the Levered ETF that is moving with the market – SSO for increases and SDS for decreases in the market.

Today’s pair trade follows the same trading philosophy as the S&P 500 lefered ETFs.  This trade will use the QQQQ or Nasdaq that is frequently classified as being more technology companies as well as more volatile.  ProShares Ultra QQQ (QLD), formerly Ultra QQQ ProShares, seeks daily investment results that correspond to twice the daily performance of the NASDAQ-100 Index.  ProShares UltraShort QQQ (QID), formerly UltraShort QQQ ProShares, seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the NASDAQ-100 Index (the Index).  These two ETFs will move in opposite direction but not always with the S&P 500 ETFs discussed yesterday.

The CNBC Portfolio strategy is to buy the ETF, QLD or QID, based on the movement of the QQQQ.  At the market close on 9/29/2011, the QLD was down while the QID was up for the day.  The ETF track the Nasdaq 100, QQQ, was down for the trading day.  Therefore, your best trade for yesterday was the QID which is used when the QQQ is down.  You should watch the technicals of the QQQ, QID, QLD to determine the intraday/short-term trend to determine which levered ETF to be invested in each day in your CNBC Portfolio.  The chart below compares the QLD to the QID over the last month.  As you can see, these ETFs move in exactly opposite directions.

For your CNBC Portfolio, you should be invested in the SSO or SDS for one trade and the QLD or QID for your second pair trade.  You can adjust these positions as necessary to stay with the levered ETF moving with the market direction of the S&P 500 or the Nasdaq 100 index.  This is an excellent trading strategy to win the Million Dollar Challenge and the weekly prizes.

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How To Trade the CNBC Million Dollar Portfolio Challenge (Part 1)

What would you do if you had a million dollars?  Would you buy something?  Invest it?  Give it away?  All aspiring millionaires can register to try
their hand at managing a $1 million “CNBC Bucks” stock & currency portfolio for the chance to win the grand prize of $1 million in CNBC’s fourth annual
“Million Dollar Portfolio Challenge” (http://milliondollar.cnbc.com).

So how would you set up a portfolio to compete?  Here are some suggestions on what to look for in constructing your CNBC Million Dollar Portfolio.

  1. Obviously, your first focus should be investments that will move in price.  You want to stay away from investments such as utilities or large cap ETFs.  You want to focus on more risky investments that have more potential for price movement.
  2. You should set up all 5 portfolios with different strategies and different holdings to increase your chances of having one portfolio producing stellar returns to be in prize contention.
  3. Even if a portfolio is producing less than desirable returns, do not give up on it as it can still win you a weekly prize as the market changes direction or your investments moves in the right direction.

The markets are very volatile with the VIX being in the upper 30’s.  This is due to the constant uncertainity in Europe regarding country defaults and the uncertainty of a slowing U.S. economy.  This creates a great trading environment as the markets will change direction on a frequent basis.  So you want to have the volatility on your side to increase the amount of price movement to be captured for profits.

I like to trade this type of market using pair trading with a slight adjustment.  First, you can’t trade options or shart any investments in the CNBC Portfolio Challenge.  Therefore, I am trading ETFs that have more leverage for more price movement.  You can also use the ETFs that have shorts built into them to profit from market declines.  I have several of these types of trades that I will share over the coming days in different blog post.

The trade for today is to capture profits from the overall market.  I am using two ETFs that track the S&P 500 but are levered to return twice (200%) of the daily performance.  The first ETF is Proshares Ultra S&P 500 (SSO) that is used to capture the UPSIDE movements of the S&P 500.  The pair of this trade is the Proshare UltraShort S&P 500 (SDS) that is used to capture the DOWNSIDE movement of the S&P 500 at twice (200%) of the daily performance.  There product description is listed below.

ProShares Ultra S&P500 (SSO), formerly Ultra S&P500 ProShares, seeks daily investment results that correspond to twice (200%) the daily performance of the S&P 500 Index. The S&P 500 Index is a measure of large-cap United States stock market performance. It is a float-adjusted market capitalization weighted index of 500 United States operating companies and real estate investment trusts (REITs) selected by the S&P U.S. Index Committee through a non-mechanical process that factors criteria, such as liquidity, price, market capitalization and financial viability. The S&P 500 Index is a price return index. Reconstitution occurs both on a quarterly and ongoing basis. The Fund takes positions in securities and/or financial instruments that, in combination, should have similar daily return characteristics as 200% of the daily return of the S&P 500 Index.

ProShares UltraShort S&P500 (SDS) seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite)
of the daily performance of the S&P 500 Index. The S&P 500 Index is a measure of large-cap United States stock market performance. It is a float-adjusted market capitalization weighted index of 500 United States operating companies and real estate investment trusts (REITs) selected through a process that factors criteria, such as liquidity, price, market capitalization and financial viability. The Fund invests in various sectors, such as consumer, non-cyclical, financial, technology, communications, energy, industrial, consumer, cyclical, utilities and basic materials. The Fund’s investment advisor is ProShare Advisors LLC.

The trade is to determine WHICH ETF, SSO or SDS, to be invested in to capture the S&P movement.  You should not be invested in both ETFs but only one based on technicals.  You can chart each ETF to look at technical indicators such as Stochastics, MACD, RSI, etc.  You then invest in the one ETF that is moving in the same direction of the S&P 500.  You will buy SSO when the S&P 500 is moving up (INCREASING) in price and buy SDS when the S&P 500 is moving down (DECREASING) in price.

You will have success by switching in and out of these two ETFS based on the direction of the S&P 500.  The technical indicators will alert you to which ETFs to be invested in at the current time in the market.

This is one investing strategy to utilize in the CNBC Million Dollar Portfolio Challenge.  I will cover addition trades in coming post regarding trading in your CNBC Portfolio.

Best of Luck in trading for a MILLION Dollars.

Get Rich Investments Still in Top Percentile of CNBC Million Dollar Portfolio Challenge

How is my portfolio strategy going so far?  GetRichInvestments is holding steady in the 99.73 percentile as of today – see graph below.  This means that I am still in line to contend for one of the great prizes in the coming weeks.  I am happy to have my portfolio in this position.  Maybe this will quiet the critics here at Get Rich Investments as we are much more than just the Monthly Income Plan.  Stay tuned for more updates on the CNBC Million Dollar Challenge.

 

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Ever wanted an opportunity to play around with individual stocks with no risk, just to see how good your stockpicking skills are?  CNBC is running a contest called the Million Dollar Portfolio Challenge which basically amounts to a fantasy stock market.  You can spend one million fictitious dollars buying stocks, and the person with the most valuable portfolio at the end of the contest (mid-May) will win $1 million.  Also, the person with the most valuable portfolio at the end of each week until then will win $10,000.

CNBC has begun their fourth annual “Million Dollar Portfolio Challenge.”  This is one of the largest prizes we have seen in a trading contest.  This year’s prizes include a payout of $1,000,000, a Maserati GranTurismo Convertible Sport and 10 Exotic One&Only and Atlantis Resort vacations. All interested contestants have to do is register with a CNBC.com account. The contest starts on September 19th. Like last year, the contest will be sponsored by FXCM. The DailyFX team at FXCM has also put together tutorials for new currency traders.

The Challenge doesn’t permit option trading so I had to stick with stocks and ETFs to build my portfolio.  What has been my strategy so far?  I anticipated the market downturn so I went with ETFs shorting the S&P 500 and Nasdaq QQQQ’s.  How did this strategy go?  Well, GetRichInvestments is in the 99.79 percentile as of close on Thusday (Sept 23) – see graph below.  This means that I am in the running to place very high in the competition and with a little luck I may actually win a prize.  I am happy that only 0.21 percentile is ahead of my portfolio.  Maybe the knowledge we show at Get Rich Investments is much more than just the Monthly Income Plan.  Stay tuned for more updates on the CNBC Million Dollar Challenge.

Get Rich Investments in Top Percentile of CNBC Million Dollar Portfolio Challenge

Ever wanted an opportunity to play around with individual stocks with no risk, just to see how good your stockpicking skills are?  CNBC is running a contest called the Million Dollar Portfolio Challenge which basically amounts to a fantasy stock market.  You can spend one million fictitious dollars buying stocks, and the person with the most valuable portfolio at the end of the contest (mid-May) will win $1 million.  Also, the person with the most valuable portfolio at the end of each week until then will win $10,000.

CNBC has begun their fourth annual “Million Dollar Portfolio Challenge.”  This is one of the largest prizes we have seen in a trading contest.  This year’s prizes include a payout of $1,000,000, a Maserati GranTurismo Convertible Sport and 10 Exotic One&Only and Atlantis Resort vacations. All interested contestants have to do is register with a CNBC.com account. The contest starts on September 19th. Like last year, the contest will be sponsored by FXCM. The DailyFX team at FXCM has also put together tutorials for new currency traders.

Of course, I could not pass a chance to test my skills.  The Challenge doesn’t permit option trading so I had to stick with stocks and ETFs to build my portfolio.  What has been my strategy so far?  I anticipated the market downturn so I went with ETFs shorting the S&P 500 and Nasdaq QQQQ’s.  How did this strategy go?  Well, GetRichInvestments is in the 99.79 percentile as of close on Thusday (Sept 23) – see graph below.  This means that I am in the running to place very high in the competition and with a little luck I may actually win a prize.  I am happy that only 0.21 percentile is ahead of my portfolio.  Maybe the knowledge we show at Get Rich Investments is much more than just the Monthly Income Plan.  Stay tuned for more updates on the CNBC Million Dollar Challenge.

Wish me luck!

CNBC Million Dollar Portfolio Challenge with Get Rich Monthly Income Plan

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