Discussion in 'ETFs' started by Port1385, Apr 15, 2009.
I just picked up some more TZA at 34.4.
The Russell 2000 just retraced perfectly 50% to 465 and that was the most logical point to enter the TZA. I would go ahead and sell those FAS shares right now especially before the afternoon finale...
You're joking man, right? Draw some fibonacci, look at where FAZ is headed. It broke it's uptrend pretty sharply, is approaching an even lower support @ ~9.80. You can't fight these days, believe me man, I've tried before and all you will end up doing is smacking yourself in the head looking at your losses.
Im not joking. We made a lower low today and may just make a lower high on the $RUT. $VIX is making higher highs and higher lows.
Tommorrow will be another lower low and lower high. We have broken out of the uptrend and my calendar says 1.5 more weeks to May. Not a good combo.
2pm approaching. Place your bets.
I'm not disagreeing with your basic assumption that we are still in a downward trending market. All I'm saying is, had I stuck in FAZ today I would be out about $2500. But I shifted strategy once it broke fibonacci and bought FAS, which I am now watching closely.
Im going to keep loading on TZA into the close...
Continuing to add to TZA as price goes higher...will lighten if it goes lower...
Well, this strategy all depends on your time frame, I guess.
I did like the other poster, and sold FAZ when it started heading lower after the open, and got into FAS. I was up around 30% overall on FAZ.
Personally, I think this more closely reflects what these 3x are designed for, namely, intraday trading.
Think of it this way - FAZ was up 15% at the open and headed down. So if you held overnight, take it and wait for another setup if it heads back up. As it turns out, it didn't. Even if you have less than 25k in your account, it wouldn't count as a day trade, so why not?
And now look at FAS, it's up 11% on the day, but from where I bought, this trade is up 20%. And again, if you have less than 25k, why NOT blow a daytrade for a 20% gain if it heads back down again?
Take advantage of the volatility in these instruments and be smart. Take what it gives you and quit swinging for the fences on every trade. Bat for average instead - the %age gains/swings available in these instruments is so great that IMHO, it requires a different mindset (more conservative IMHO) than buy and holding stocks, where smaller % gains are typical, and holding for several days is almost required to get decent gains on your trades.
Look at this chart. This is my assumption. Not my own chart, its from a blog site I read, but its better then what I can draw and its similiar to my own thought process...
I see a head-and-shoulders reversal on the long-trend. That chart says we are headed higher.
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