FAS or FAZ which one?
- Thread starter bat1
- Start date
S2007S - I think you may find that you'll get better execution trading even lots (increments of 100). Its much easier to get to 100shs in a $9 stock than a $70 stock - but if you can swing it you'll notice your market orders won't slip as much. At least that's my experience with E*Trade.
This is the exact opposite of my feelings. Too many gap mornings for my comfort - yesterday up, then today down.. rinse and repeat. Damn near every day where you have a strong close,- in whichever direction - the next day gaps in the opposite direction - sell rallies, buy dips?
Look at it this way - if you bought at 8.46, and sold around the peak, say 9.46, which is also when the DOW rejected 8200, NQ rejected staying positive, and the ES rejected going positive..... that's 11% or so.
Do this once a day and........
Or, since it looks like you've got the account for it, day trade for multiple 3-5% gains.
And as I write this, price is now below 8.46.
:eek:
ETA: man, lotsa volume lately in this. Maybe Winston's shilling this is having an effect?
Quote from Haroki:
This is the exact opposite of my feelings. Too many gap mornings for my comfort - yesterday up, then today down.. rinse and repeat. Damn near every day where you have a strong close,- in whichever direction - the next day gaps in the opposite direction - sell rallies, buy dips?
Look at it this way - if you bought at 8.46, and sold around the peak, say 9.46, which is also when the DOW rejected 8200, NQ rejected staying positive, and the ES rejected going positive..... that's 11% or so.
Do this once a day and........
Or, since it looks like you've got the account for it, day trade for multiple 3-5% gains.
And as I write this, price is now below 8.46.
:eek:
ETA: man, lotsa volume lately in this. Maybe Winston's shilling this is having an effect?
I hear yea! this thing moves so fast it's
unreal:eek:
I think that's due to the fact, as Winston describes it (IIRC), that only 20% of your money is actually in stocks, and the rest in Russel 1000 futures. And since futures whipsaw all over the place with the VIX this high......
If you're looking for LESS volatility, I'd say UYG is the way to go, since I don't think they use the same method. Rather, I'm guessing that they use OUR money to buy/sell and leverage that 2x. I'm guessing there, but if you watch the ladder on something like IB's Booktrader, you'll find that price moves smoothly, with no jumping all over the farging place. LOL.
And since there's shares available, you can also short it.
Almost Haroki - other way around though. $80% is in stocks and 20% is cash. The 20% is responsible for the 220% leverage to get up to 300% market exposure.
Take a look at the link below. There were over 82 million shares traded today in FAS, its fully liquid and it tracked pretty well.
Think of these as two seperate funds, the red line (FAS.IV) is the fund that the fund manager runs and the blue line (FAS) is the fund that is bought & sold in the secondary market. You'll notice that FAS traded at a premium today because there was usually buying demand. Also, you can see that in places FAS (the blue line) tends to jump more quickly, climb steeper, fall off sharper, etc. than its underlying value the red line.
The fund did what it was supposed to do its just that financials were all over the place - FAS holds GS, C & BAC, at one point today I saw GS up about 2% i remember and C & BAC were both down ~15%. Depending on the weightings and the way those stocks moved and when they moved that's what caused the fluctuations.
I changed the link to overlay UYG and UYG.IV as well - you can see that they traded at a premium as well and often times fell off sharper then their underlying as well.
Hopefully this will answer some questions - if not ask away and I'll be happy to get something better for you.
http://finance.google.com/finance?c...mptzos=-18000;-18000;-18000&q=NYSE:FAS&ntsp=0