FAZ acting dumb !!

Discussion in 'ETFs' started by jokepie, Oct 19, 2010.

  1. jokepie


    Finacials are down over 1% and over all market down over 1%.
    FAZ only up 0.8%

    Whats happening !!!!
  2. jokepie


    Shouldn't it be around up 2% +
  3. When you write "Financials are down over 1%", which part of the financial sector do you mean? See "Index Sector Weightings" below ...

    From the Direxion website (http://www.direxionshares.com/etf/fbe_3x_shares.html):

    Fund Objective
    The Financial Bear 3X ETF seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the Russell 1000® Financial Services Index ("Financial Index"). There is no guarantee the fund will meet its stated investment objective.

    Target Index
    The Russell 1000® Financial Services Index is a subset of the Russell 1000® Index that measures the performance of the securities classified in the financial services sector of the large cap U.S. equity market. As of January 29, 2010, the Index had an average market capitalization of over $9.794 billion dollars and a median market capitalization of $3.516 billion dollars. One cannot directly invest in an Index.

    Index Sector Weightings
    Banks: Diversified 23.90%
    Diversified Financial Services 20.88%
    Insurance: Multi-Line 12.66%
    Real Estate Investment Trusts 11.69%
    Financial Data & Systems 8.95%
    Insurance: Property-Casualty 7.70%
    Asset Management & Custodian 4.60%
    Insurance: Life 3.99%
    Securities Brokerage & Service 3.16%
    Banks: Savings, Thrift & Mortgage 1.25%
    Real Estate 0.54%
    Commercial Finance & Mortgage 0.36%
    Consumer Lending 0.33%
  4. jokepie


    Okay I was dumb holding some Calls
  5. joe4422


    You also need to understand that three times leveraged ETFs suffer deterioration. So you wouldn't want to buy long dated calls.

    If you look at the broader financial sector, it was on a massive rally all morning.
  6. What about the Market crash you called for today? What's up?
  7. jokepie


    I guess you are right, I had long dated calls.
    Financials I believe are getting the sector rotation back ..???