Fas/faz - 5/18

Eko_Trader · May 18, 2009

Quote from scot.mcpherson:

See but now we are stuck here, hovering at 9.67 or whatever...This is why I didn't get in yet.

I also don't think anything is smelly, we are back within the channel that has been developing since march 6th, the two weirdo peak weeks aside.

It looks like a consolidation before a significant move. I think this thing wants to go up, atleast the S&P wants be above 900 for now. That's just the setup I'm seeing now.

Disclosure: I'm flat at the moment but short biased

Haroki · May 18, 2009

Quote from Ivanovich:

As in "irrational". But lest we forget, this "irrational" behavior can continue for a long, long, long time.

True dat.

stevegee58 · May 18, 2009

FAS/FAZ are great day trading vehicles.

The NR7 setup I took only had a $0.16 risk (high-low on the setup bar). MFE is about 2R so far.

Haroki · May 18, 2009

Ok, I'm short biased and bored.

So took a few FAZ6 calls here to keep me interested.

scot.mcpherson · May 18, 2009

I am still in cash looking at what I missed out on...but better safe than sorry.

stevegee58 · May 18, 2009

Out of FAS for 9.98. That was a 2R trade, so not too bad.

Ivanovich · May 18, 2009

I simply cannot bring myself to pull the trigger on FAS. I know I'm missing out, but I'd rather miss out then buy at an intermediate top.

I cannot justify the market movement and therefore I cannot trade it.

stevegee58 · May 18, 2009

I guess I'm kind of a naive trader; I try not to think too much about the trade. I have a couple of simple setups that I use that give me low risk entries. I let them run and trail a stop. If it gets near a round number like 10.00 I either close out or scale out.

Smart Money · May 19, 2009

Despite futures pointing up as of 8 AM, my TA tells me that today is a FAZ day. The indexes are way high compared to the short term moving average line.

SM

Ivanovich · May 19, 2009

Unfortunately, it's periods like these (panic buying) where TA's effectiveness is at it's minimum.