Fas/faz - 5/18

It looks like a consolidation before a significant move. I think this thing wants to go up, atleast the S&P wants be above 900 for now. That's just the setup I'm seeing now.

Disclosure: I'm flat at the moment but short biased

 

True dat.

 

FAS/FAZ are great day trading vehicles.

The NR7 setup I took only had a $0.16 risk (high-low on the setup bar). MFE is about 2R so far.

 

Ok, I'm short biased and bored.

So took a few FAZ6 calls here to keep me interested.

 

I am still in cash looking at what I missed out on...but better safe than sorry.

 

Out of FAS for 9.98. That was a 2R trade, so not too bad.

 

I simply cannot bring myself to pull the trigger on FAS. I know I'm missing out, but I'd rather miss out then buy at an intermediate top.

I cannot justify the market movement and therefore I cannot trade it.

 

I guess I'm kind of a naive trader; I try not to think too much about the trade. I have a couple of simple setups that I use that give me low risk entries. I let them run and trail a stop. If it gets near a round number like 10.00 I either close out or scale out.

 

Despite futures pointing up as of 8 AM, my TA tells me that today is a FAZ day. The indexes are way high compared to the short term moving average line.

SM

 

Unfortunately, it's periods like these (panic buying) where TA's effectiveness is at it's minimum.