Direxion Financial ETF - 6/1

[scot.mcpherson]

Quote from kurbin:

Yeah I was just looking at it... but I haven't got a clue on how to analyze charts... except I know that it shed 20% just today.

Support for that ETF runs around $5 MOL. It's an extremely low volume ETF though, I have period volume reports of 100 shares in 20 minutes for instance. That's ultra low volume, which makes it a bit less liquid. One of the reasons I like trading FAS and FAZ is they are such high volume that I can get rid of them in 2 seconds....If the market nose dives and I try to sell hzbbf, I might not be able to sell it except to someone trying to buy it at a huge discount.

This might be one of those stock you place a crazy low limit order for, and see if it gets picked up by someone not paying too close attention to the order books.

 

[scot.mcpherson]

Quote from kurbin:

Yeah I was just looking at it... but I haven't got a clue on how to analyze charts... except I know that it shed 20% just today.

Dude, you really need to learn how to read a chart...you have no business throwing money around until you do. Yeah I pull the trigger based on instinct, but I get that gut feeling because of what I read in the chart.

 

[Haroki]

Quote from scot.mcpherson:

Haroki,
What exactly are you trying to show me? I am obviously not seeing it.

These haven't been around all that long.

To make a point that they've only made 2 (actually 3) major HH, when for 1/2 of its life span has been in an up market is...... kidding yourself if you think you're making a discovery.

Another problem is the rebalancing eod. It makes longer term observations invalid. Use XLF.

Yet another problem is looking at these on linear charts. If Quotetracker did % charts, you'd see an obvious difference.

 

[midniteeuropa]

seems like bears are showing weakness when they should be showing strength from here to the next 30 days. I guess all those shocking upsides have made the bears very fearful, when in fact, now is the time to be very bearish more than ever.

it just seems to be foolish to be bullish from this moment on, massive record breaking job losses with no reasons for companies to hire more, or ever again. Gov't jobs are downsizing along with every daily consumable goods going up in price.

everything is so massively upside down and broken.

Quote from S2007S:

Sold my 750 shares at 4.85.


Still holding onto many shares though.

Will buy back in on anything below $4.50

Still holding RFN in my IRA till tomorrow morning. Then im out ahead of the job numbers on Friday.

 

[scot.mcpherson]

Quote from Haroki:

These haven't been around all that long.

To make a point that they've only made 2 (actually 3) major HH, when for 1/2 of its life span has been in an up market is...... kidding yourself if you think you're making a discovery.

Another problem is the rebalancing eod. It makes longer term observations invalid. Use XLF.

Yet another problem is looking at these on linear charts. If Quotetracker did % charts, you'd see an obvious difference.

I am not saying I have made a discovery, but can you honestly say that you are comfortable holding FAZ for any length of time greater than one or two days? Sure there were a couple FAZ rallies, but did you know they were good rallies when they started?

 

[Haroki]

Quote from scot.mcpherson:

I am not saying I have made a discovery, but can you honestly say that you are comfortable holding FAZ for any length of time greater than one or two days?

Yes. There's absolutely zero difference in how FAS and FAZ track. You only think there's a difference cuz recent history - up market - has made FAS the better hold, due to the general market direction. Nothing more.

Sure there were a couple FAZ rallies, but did you know they were good rallies when they started?

Nonsense question Scot. Nobody knows if it's gonna be a good rally.

 

[kurbin]

What are you guys buying into this morning?

 

[scot.mcpherson]

Quote from Haroki:

Yes. There's absolutely zero difference in how FAS and FAZ track. You only think there's a difference cuz recent history - up market - has made FAS the better hold, due to the general market direction. Nothing more.

In November 08
Rifin closed at 650 for the month.
FAS Closed at 30
FAZ Closed at 56

Jan 2009
Rifin 501
FAS 9
FAZ 50

In March which the rifin closed at the roughly same value as january

rifin 488
fas 5.5
faz 20.69

Today in which the rifin is roughly the same value as December 2008 Close.

Today December 2008
Rifin 640 654
FAS 9.85 20.50
FAZ 4.75 35.70

Nonsense question Scot. Nobody knows if it's gonna be a good rally. [/B]

Precisely, however the question was intended to learn or point out that other than the odd faz rally, that it isn't a safe security to hold on to. Even when the market was in full bear, except for the exceptionally bad bear days, faz still continued to decline in value.

During the decline of the market in 2008 through march 2009, FAZ stayed pretty FLAT other than the odd spikes, and FAZ still declined after each spike to new LLs. If it tracked -3x the decline, the value of FAZ should have increased through the bear market prior to march 6th, but it didn't. In continued to trend down, except for those very nice spikes of course.

 

[scot.mcpherson]

Looks like the rifin took flight again today. FAZ down to 4.53. Wonder about entering it now.

 

[Eko_Trader]

Quote from scot.mcpherson:

Looks like the rifin took flight again today. FAZ down to 4.53. Wonder about entering it now.

Do you see a setup?