I'm long FAS too, but it's been a while. It is nuts, but at least it's not potentially suicidal like going short with full conviction into this kind of news. I'm hearing alot that this is old "buy the rumour, sell the news" speil, but the market is too schizo to be predictable like that. It could easily be a "buy the rumour, buy the news, sell the honeymoon" deal. We'll have to see.
I dont know a thing about FAS, but a rally floats all boats. And as long as you are just a little patient, pretty much any stock you buy at these levels, even the Auto's, will bounce profitably in the next rally. But do your homework to know if FAS is good quality. If its a stinker, sell in the rally and leave it alone. Plenty of good stocks to play with if FAS turns out to be a stinker.
how low/long will you hold it? if the pre-market open takes a dive will you cut? i'm thinking about jumping on 5am sharp with a tight collar. i hate to miss the volatlity we've been seeing lately.
/ES is down 1.5%, 12:00 A.M. EST. Unless Geitner drops a bomb or the Senate breaks out in a fist fight, I think tomorrow will be slightly up or down, no major moves. Give the market a couple days to digest everything and plan the next move.
That's obvious since FAS is an ETF. You do know what they are don't you? Sheesh, the people dispensing advise here. Amazing. http://www.direxionshares.com/etfs
maybe the broad market will go sideways but the financials and insurers will see big intraday volatility.