Somebody talk sense into me. FAZ looks too good to be true.
Just watch Max Keiser for about 27 minutes and you'll get the motivation up to short everything even remotely tied to the financial terrorists...hehe...
Seriously, just make sure you understand how leveraged ETF's actually function before loading up.
Very possible you have a good short, most likely you'll have two up days on decreasing volume following todays move, keep in mind your charts/indicators. take a look at your hourly, daily and weekly, macd up, stoch up, momentum up, Bollinger bands.
Seems to me that on the daily charts it broke and closed above it's 200ma and looks like resistence is about 52 - 54 so if you go short keep a watch for a correction to 48 - 49 from there you may see more strength to continue the uptrend, so keep a close watch and remember 10% of something is better than 100% of nothing.
Hope this helps and good luck.
I don't think it is to good to be true. The system is screwed. There is TREMENDOUS downside potential here.
The real question is what can go wrong with the trade?......I can't think of a whole lot. Nevertheless I am watching this VERY closely.
I watched an interview by that Nigel Farce?? guy, the independent Ron Paul type of the EU. He said he could see a Greece default in weeks. That would rock for FAZ.
Just be aware of tracking error you may experience in leveraged ETFs
If you got in early this AM then you have done well since FAZ has rallied from the morning lows as stocks have pulled back to now. If so congratulations! FAX scares me a little but best of luck to you. I've been in TWM a few weeks so maybe we can ride the R2000 and R1000 financials down together. Good luck.
The story on the Italian banks may not matter too much but it can't hurt FAZ.
Moody’s changed its outlook on 13 mid-sized and smaller Italian banks to negative, and warned them of a potential downgrade. However, Italian PM said Italian banks are well capitalized, and is not worried about Moody’s warning
WOW. I go off grid backpacking for a few days and look what happens.
Ratatouille. I wonder if it would be worthwhile to do a put on FAZ Sept 52-55 range. We all know that financials are in big trouble. Just a thought, could be fun.
Calls would be better, as FAZ is 3x Short Financials. It went up 11! today. Puts would be a bad idea at this stage.
The funny thing is those mistaken 54 FAZ puts would have been amazing today if bought yesterday. This whole week could have been buying Puts and Calls back and forth each day.
It would have been riding the vomit comet. No thanks. However after today and with the halting of short sales something silly like 1 FAZ Sept 75 could turn mighty green. I save most of my grand "ideas" for my virtual account, then I am only kicking myself if things turn green. Otherwise it feels good to know I didn't lose my shirt on a bad call/put.
Also I did notice the spread in the FAZ options, puts just a little out of the money are much lower than the corresponding call. 2x and 3x ETFs are scary business in general.
Thanks for your wisdom and good luck to you as well!
Is there a better way to get exposure to shorting this POS market other than with an ETF?
I can't do margins, I'd never leave the house and I'm not that type of investor/gambler.
I do understand how the leveraged ETF's track, but have managed a cumulative 85% net gain in the past week with pretty accute timing. I just break down the math and take up positions/limit orders. Call it lucky, whatever.