Only because I believe he thinks we are tossing money to the wind. And although I can't speak for everyone else, I realize I am not capturing as much as I could, but I am still ahead and making progress. My wife and I were confident enough to more than double the account basis.
I don't know, but I think FAZ is goign to climb, I am hoping for a late afternoon selloff, but I think even if it doesn't so long as FAS doesn't start flying again that I am in a good position to hold over the weekend if things remain steady. I'd prefer to get a few hundred clams before the end of the day and get out though and reposition on Monday.
Looks like I got out of FAZ at the right time too, it continued to decline the rest of the afternoon. How did everyone else do this week? I am up 7.97% for the week.
I am looking at buying some July 4 strike calls on FAZ, they are extremely cheap, expecting a slight pullback in the market. The problem is that I am worried that FAZ might fall to $2...as this market seems to just want to keep going up. I have been in and out FAS as daytrades, but I believe that it might hit a ceiling sometime next week. FAZ options seem to have some good pricing. The news about mortgage rates going up might have the potential to negatively effect housing values...if home sales fall off again, but another drop in unemployment could bring buyers into the equities market. If massive amounts of investors begin chasing the stock market... FAZ could end up at $1 by August.
Well, you have some good points in terms of the mortgage rates, but wait till the market starts showing weakness before you start betting to its downside. I see Friday's price action as a weakness, seems like traders were seriously taking profits. However, calling tops can be an expensive habit. If you wanna buy those options now, I would suggest you hedge yourself with fas even though you daytrade. If you're having doubts about the direction of FAZ, then wait on it to show a trend. If you think investors are gonna run into the market and simply buy financials, you may be right until fed raise rates. Right now, it may be a little harder for banks to turn a healthy profit since they still aren't lending like before. On the flip side, they can borrow cheap and lend it out at a nice rate...meaning they don't have to make out a lot of loans to make money. At this time, I'll just wait till the market tells me what it wants to do.
Anyone still playing FAZ. Still holding shares, let go some shares last week at $5.12 and was hoping for an up day in the market again to buy some more under $4.50 however never got the chance, looking for $6+ soon. Will be buying FAS soon under $6.00 in my IRA.
I sold the last of FAS position last week at $9. Purchased for IRA around $4 some time ago. Got burned on FAZ in trading account because I didn't enter stop loss and have stayed clear ever since. Most expensive mistake I've ever made. New entry point for FAS is on tonights agenda...