another slow day with FAS and FAZ, if I saw the markets down as much as they are without looking at either FAZ or FAZ I would think there would be at least a 10-15% move.
Exactly. it's tough to say what's gonna happen here. Quite the divergence. Markets are down 1.5 - 2 % but financials are flat. VIX is up above 30 again though, but TRIN is flat - around 1, althoough it WAS up around 2 before. I really don't have a clue....
Yeah, one thing I've done today, when I see this kind of divergence/disagreement is trade for a set target of 1-2%, and just make several trades. And if I get in a trade where everything starts agreeing, I let it run, and will take a wash if I need to, in order to get the large move.
I wish I had the resources to do that. unfortunately having limited trades severally limits your potential and increases your risk.
Yeah, you COULD get around that by trading index futures. But in one of the great ironies of the stock market, it's so leveraged that if you're not a good trader, you can blow out before you ever have chance to learn. And so you end up trading "scared" in equities and: 1- hesitate taking trades cuz you don't want to violate the PDT - meaning you wait for the "perfect" setup. Riiiiight. 2- you end up holding onto positions that you KNOW you should get out of, cuz if you hold onto today's trade and remain profitable, you can get out tomorrow and keep your DT. It's all madness.....
This is exactly what I thought. I've been out all day (Graduations), and I found out the market is in the RED, I figured my FAZ calls will be in some good money , only to find out that I'm actually down a small bit. Crazy day for FAZ/FAS!!