The FAZ has been one of the greatest long term investments this year. All those who followed me in congrats.
Sold about 20% of my position today, the rest of it most likely tomorrow if there is another drop. Remember as quick as this has taken off it will fall twice as quick. This could be back in the 40-60 range. Seems there could be a bubble in these short etfs.
Time to bring Fonzi back to the top. You have to take advantage of this pullback on the FAZ. Its a bargain at these levels. A good value play for investing.
A few successful notable trader bloggers that I follow have loaded up on the FAZ. They did not post any charts to demonstrate their reasoning so I decided to draw a chart to see what they are seeing. It looks like price has retraced to a few resistance areas on the chart. This looks like a good time to buy the FAZ. Its going to take a whole lot of buy pressure for the XLF to break through all that resistance. Plus, look at that shooting star candle at the end indicating a reversal might soon be underway. http://yfrog.com/0dxlffj
wow market shrugging off freddie news and GE credit cut by the pathetic standard and poors. rally looks to continue
Back between my buy price, bought today for my IRA at $40.50, tomorrow I go long in my trading account below $35.00 if it gets there, short term price target $50. Traded FAS, had 2000 shares now holding 800 shares. Fast money hyping FAS, up over 100% since it dropped to new lows. FAS can easily drop back to $3, we could see $10 however as quick as these 3x move it could be back at new lows. Bear market rallies are quick and convince many that the bear could be gone, do not buy the rallies, SELL them, fools went long these 2 days. Back below 7000 we go.
Why would you buy before it turns? The danger of such a trade is that price could easily break out of the channel upwards initiating a prolonged bull rally. I acknowledge that price is at the upper bounds of the channel, but I wont trade it until I see it moving down. Thats the safe way to play it...
Look at how price jumped above the channel. It could be a bull trap, but somehow I think it will keep going.
Now its time to PILE into the FAZ. It looks like the swing high was a bull trap. GE is about to sink the market.