I bought 235 shares of UPRO yesterday (triple leveraged S&P 500 ETF) at 36.49$. This morning, I turned on my computer right before the CPI number release to see it live. I work in finance, so I have access to FactSet.
I swear, I saw the Factset print “CPI hotter than expected +0.3%; Core CPI +0.1%”. OMG, what an horrible news. I check the S&P 500 futures + my UPRO position and it is up! Still under panick thinking it will crash at any time, I call my broker to place a pre-market sell order. Yes, I am in Canada and I can only do pre-market orders over the phone (and the commission cost me 48$). One thing you also have to consider, I cannot do my trades whenever I want. My employer gets my trades on a repport, and I must trade before/after work, or during my breaks (15min), or during my lunch (30min). So I am limited in time reaction. Anyway, I sell my UPRO shares at 39.74$ for a good gain considering I held the position for less than 24 hours.
Then, right before work, I check the news on FactSet to see inflation was cooler than expected. My UPRO stock opened at 40.46$. I told myself how stupid I am. I would have kept my position knowing CPI came cooler. I can swear the God I saw the print at 8:30am saying inflation came hotter than expected. Now the market cooled down from the high opening, UPRO is currently trading under 38$, and looks like I did a good move somehow.
Leave a Reply