That's called hold and hope. Statistically you'd be better off taking the loss for some of the reasons discussed earlier, but don't take that as advice, as I'm willing to concede there is a possibility FAS will go to $12. That's not to say it won't go to $3 before then, though.
I'm also long FAS around $12. Why is there no reason to think that it will not get back to $12 someday. Now, it may take a month or two or three, but never again $12? Please, if I am just dead wrong about this let me know. I agree that I don't think it's going to $12 tomorrow, probably not even next week, but, since I'm long ), I would like to think we'll see $12 again and more than that. I read somewhere that FAS was shorted 4:1 which explains part of the huge sell off. So when the buying does start, seems like it should take off fairly well. According to ocillators and such the market is approaching an oversold condition which could spur a nice little rally and put FAS in the $12 range. Am I way off base here?
I don't think so. It looks like today might be a repeat of April 20, 2009. And it is more oversold than last time. I think folks got carried away yesterday with the sell off and the when people abandon their short positions it will make it rebound. How high is hard to gauge, but April 20th is a good guide. SM
I don't think you're way off base. It may see 12 again someday, but the time you're gonna waste hoping for it to come back, you could have made several profitable trades. A good trader knows when to close a trade. (I assume you;re a trader). I'll recommend you cut your losses and move on cuz I'll be surprise if FAS sees 12 again withing a month...
Chop is crowding the naked shorts of both FAS and FAZ. Both of these will go to 200 over time, as the naked shorts will have to cover.
Well, I'm still short biased here (long FAZ) but not in anything yet today. Now that the morning volatility has settled down, we'll see which way she wants to run.