Fas/faz - 5/11

Quote from kurbin:

By the way, does anyone feel strongrly about any other Direxion ETF out there in regards for tomorrow/rest of week?
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hehe, Don't ask anyone what they feel about something...I find other people's opinions tend to make me do things I normally wouldn't do, but I am impressionable. I just like to talk about things, I don't ask for advice here, I just like to learn over time from the kind folks here.

Just read the charts, read the news that affects the sector your concerned with, try to know what events are coming that will affect the price of your etf (such of pending government announcements, bankruptcies, earnings reports, etc.) and then watch what the stock is doing. Obviously you want to buy the lows and sell the highs, and that might be obvious, but its something that people seem to miss a lot.
 
You guys don't sound too experienced and should seriously rethink trading these instruments (fas/faz). But hey I am fairly new to trading as well (about a year) and I took a flier on FAZ this afternoon at 5.38. BE EXTREMELY CAREFUL with these etfs. Google FAZ and decay and you will realize why both of these instruments are going to zero at some point. They are daytrading instruments. That being said, I just couldn't resist trying to catch the top of the rally in the banks and am kind of expecting to get burned....:p
 
What the hell!?!!?!? Pre-market on FAS is down 8%...

This is so depressing. As soon as I make my money back at $12, i'm going to dump these shares... if it ever reaches $12.
 
Quote from kurbin:

What the hell!?!!?!? Pre-market on FAS is down 8%...

This is so depressing. As soon as I make my money back at $12, i'm going to dump these shares... if it ever reaches $12.
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Try not to own those things overnight. I'm not sure if it'll get back to 12, and that shouldn't be your mentality. A good trader knows when to wrap up a loss and move on.
 
Quote from Eko_Trader:

Try not to own those things overnight. I'm not sure if it'll get back to 12, and that shouldn't be your mentality. A good trader knows when to wrap up a loss and move on.
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True, but in this case, the markets may be oversold. If you look at it from the perspective of deviations away from the moving average, it might not be a bad idea to be patient and see how much it comes back. I'm in the same situation, but I'm holding steady because we are way off (too far off) the moving average.

SM
 
Quote from Smart Money:

True, but in this case, the markets may be oversold. If you look at it from the perspective of deviations away from the moving average, it might not be a bad idea to be patient and see how much it comes back. I'm in the same situation, but I'm holding steady because we are way off (too far off) the moving average.

SM
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I myself am holding FAS at 9.90, so I am in the same boat as well. I actually had it the day before at 10.40 and watched it drop to 10.20 before I bailed, then hopped back on at 9.90 yesterday when it looked like it was turning around and watched it drop some more. It came back to profit for me, but I couldn't drop it because of daytrades. i was planning on it this morning, and it gapped up when the premarket openned, but it dropped back down before I woke up so that opportunity was lost again. It will come back to profit for me, for the trader who owns it at 12, I feel sorry for you, the wait is going to be a while. it will happen, just don't know how long. In this case, I would look to find the highest high you can get, then get out and trade another day. But that's just me.
 
Quote from Smart Money:

True, but in this case, the markets may be oversold. If you look at it from the perspective of deviations away from the moving average, it might not be a bad idea to be patient and see how much it comes back. I'm in the same situation, but I'm holding steady because we are way off (too far off) the moving average.

SM
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You said oversold, did you mean overbought? From almost all perspective, the market is overbought coming into this week and you've only had 2 down days out of three... that does not equal oversold conditions. I'm more comfortable being in Scot's position at 9.90 and holding, but at >12, I wouldn't hold my breath. Again, I may be wrong. Goodluck
 
Took the FAZ long breakout of the 10:15 NR7 (white) bar. All those NR7 bars in a row shows the market holding its breath for something.

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Quote from scot.mcpherson:

For the trader who owns it at 12, I feel sorry for you, the wait is going to be a while. it will happen, just don't know how long. In this case, I would look to find the highest high you can get, then get out and trade another day. But that's just me.
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Why do think FAS is going back to 12 anytime soon. Not until Q2 result is over and is really good.

Wasn't it a manipulated market which achieved it's desired goal.

* Stress test
* Bank can raise capital at higher prices

Now when everything is done; don't hold to the loser FAS. Came on FAZ side. Faz is going north...
 
Quote from TraderSU:

Why do think FAS is going back to 12 anytime soon. Not until Q2 result is over and is really good.

Wasn't it a manipulated market which achieved it's desired goal.

* Stress test
* Bank can raise capital at higher prices

Now when everything is done; don't hold to the loser FAS. Came on FAZ side. Faz is going north...
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+1

There's no reason to think that FAS will see 12 again in the near future.

While I agree that FAS "might" see 12, there's no guarantee of that, cuz it doesn't take into account the deacy factor. The longer this goes against him, the capability of it climbing back there gets less and less.

And even if it does, it doesn't take into account the time lost that one could be in a profitable trade. If it takes a week to get back there (which is generous, IMHO) you've lost the oppurtunity during that time to make other profitable trades.

Money can be recaptured.

Time never can.
 
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