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Re: The Financials: FAS vs. FAZ
And so the saga continues :rolleyes:
I'm watching FAS for an exit out of FAZ. For those holding FAZ in the 20s, I imagine life is looking pretty good right now. As for myself, I'm just looking objectively for a good exit.
Hourly Chart 16 days. If we can close below the solid green trendline, then I'll be voting for a gap fill and possible run to 5.40
Attachment 97
Looking at On Balance Volume. We have Lower Highs.
Attachment 98
Looking at the ADX trend strength. We have Lower Highs and have moved into the "choppy" area.
Attachment 99
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Re: The Financials: FAS vs. FAZ
I suppose I could hold on for another 20 years and let my kids use the money to pay off the debt the government has passed onto them?
Ugly, ugly, ugly chart...
Attachment 104
Re: The Financials: FAS vs. FAZ
FAZ closed at the high of the day. Good sign (for the bears)
Re: The Financials: FAS vs. FAZ
Quote:
Originally Posted by
etftalk
FAZ closed at the high of the day. Good sign (for the bears)
Go Bears!
Re: The Financials: FAS vs. FAZ
So some folks let go of their FAZ this morning. I can't say I blame them, it's been on the wrong side of the trade since the 666
Re: The Financials: FAS vs. FAZ
Financials are actually lagging now. Probably a good time to short (now that I sold FAZ). :D
There is that strong positive seasonality for Thursday (pre-Good Friday) and a negative bias for Monday (post Easter). That said, I'm not a big fan of using seasonality right now. The other market forces are too great.
I'd like to see how the market opens on Monday, but if we rally today and / or Thursday, I might start getting short again for Monday. The greed in me hates to miss a gap down open - if that is what we get. I don't mind missing a gap higher because I think it would be short-lived.
Re: The Financials: FAS vs. FAZ
I knew the math was bad. I didn't know it was this bad.:(
"Much has been written about the math behind leveraged ETFs and mutual funds, yet most investors fail to realize the true impact. ....For this example, I have chosen two inversely related leveraged funds: Direxion Financial Bull 3x Shares (NYSE: FAS) and Direxion Financial Bear 3x Shares (NYSE: FAZ). The chart below illustrates the returns for the five-month period from 11/6/2008 through 4/6/2009 for the following four scenarios:
- Green Line: Buy and hold FAS = -86.3%
- Red Line: Buy and hold FAZ = -76.9%
- Yellow Line: Buy and hold equal amounts of FAS and FAZ with no rebalancing (what some might consider a perfect hedge) = -81.6%
- Cyan Line: Buy equal amounts of FAS and FAZ and rebalance every day (a lot of work) = -25.0% (not counting transaction fees and slippage)
http://investwithanedge.com/wp-conte...04/fas-faz.jpg"
http://www.greenfaucet.com/technical...x-impact/46093
Lady
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Re: The Financials: FAS vs. FAZ
Thanks Lady, I hadn't realized just how bad it was until I saw your chart and did some price performance back testing myself just to confirm.
It should be about criminal what is happening. :mad:
Today's price performance.
Attachment 113
Last 10 days
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Re: The Financials: FAS vs. FAZ
One of my all-time favorite blogspots is "Slope of Hope" and today I felt his pain when he said, "I am not touching FAZ again...........ever..........":wacko:
http://www.slopeofhope.com/
Lady
Re: The Financials: FAS vs. FAZ
Quote:
Originally Posted by
XL-entLady
One of my all-time favorite blogspots is "Slope of Hope" and today I felt his pain when he said, "I am not touching FAZ again...........
ever..........":wacko:
http://www.slopeofhope.com/
Lady
I have no problems with FAZ as a short-term trade only. But it sure does have to be watched closely and/or have stops in place. :toung: