ULE

[Steven J]

#14528

Hi Sean,
I have 2 trenches in ULE with an average price of $16.53 and wonder if you would recommend a 3rd buy-in at the current price of $12.91 which reduces my cost almost $2.00 per share. Or is it better now to hold my cash for new LI picks?
Thanks!

Steve

[Sean Hyman]

#14529

Yes, you can average down if you wish. But in the end, that’s up to you.

[Steven J]

#14530

Thank you Sir!

[Sean Hyman]

#14531

You’re welcome. If you didn’t get a chance to see yesterday’s TV interview, it’s in the Ask Sean section too and I briefly talked about the euro there.

[sleep25 (Dottie)]

#80019

Sean, I’m in ULE at 16 and 13.30. Considering averaging down at 10% lower would be at 11.97. Is 12.15 close enough or should I wait, depending on what wave we are in. I’m thinking its wave 2, but not sure if that wave is complete.

[Sean Hyman]

#80022

Well, if you’re additionally in FXE with us in LI, then that’s a euro position too. So you probably don’t want to add more to ULE if you’re trying to get 3 tranches into FXE since both are euro positions. ULE is simply a leveraged position of the euro whereas FXE is not levered.

So, when the euro goes up, they’d both go up. However, what you want to consider is if they both went down, the more overweighted you are into it, the more it will affect your portfolio.

When the euro starts snapping back, it will be no problem for your ULE position to head into profitability.

[sleep25 (Dottie)]

#80025

Yes, I am in FXE, all 3 tranches. My avg on ULE is 15.13.  I didn’t do well on using the same dollar amounts back then so I’m more averaged to my $16 price than I was to my $13.30. So wondered if I shouldn’t add to it. But if you think I would be too much in Europe, then maybe not.

[Sean Hyman]

#80040

I wouldn’t add to it for the reason above: you’d be overweighted in the same thing, the euro.

[sleep25 (Dottie)]

#80047

Okay, thanks

[Sean Hyman]

#80048

You’re welcome.

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