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40 million traded so far today! wow
nice coaster ride today (so far)
Agree porgie Tirebiter,
i play both every day
Yes the banks are over sold
Had a good morning with fas
And having a good afternoon with Faz
you just have to roll with the charts
I never hold over night!!
But i do play after/pre market on occasion
Hobbies, roller coasters!!
Good article, the author does a good job of explaining why leveraged ETFs are losers.
http://seekingalpha.com/article/286027-stay-away-from-leveraged-etfs
I'm not saying you have to stay away from them like the author does, but it is critical to understand how they work.
I think I'm the only person on I-Hub that likes FAS and FAZ equally. FAZ just gets a lot more attention because of all the cheering going on over there for the collapse of the economic system.
Actually, this is the correct chart to be looking at with FAS/FAZ:
http://stockcharts.com/h-sc/ui?s=$rifin
And yeah, I think the financials are oversold.
I personally steer clear of both FAS and FAZ during times of ultra-high volatility.
There is a temptation to try to time the market by betting on one, and then trying to flip into the other at the right moment. It's true that one can get lucky and make a quick buck, but what it comes down to is just exactly that... luck.
The one thing that is sure about these two ETFs is that during periods like we just went through with high volatility, the time decay factor on both funds increases dramatically. So you also have that working against you.
The lack of posting here lately is odd...
Anyway, good night all. ;)
Wow I love corrections.weak hands are out of the picture.
No world recession coming.Stocks on both side of the pond
have never been cheaper.
Will it stay up though? Hmmm...
It will be going up Tuesday...
What will it do tomorrow ?
Direxion Daily Small Cap Bull (TNA) Is this what your talking about ?
Im not sure I understand. Im watching FAS and FAZ to learn there behavior and patterns. Im thinking this is an easy 10-25 % weekly gains buy flipping between the two. Do you have any expierence trading these two ?
Do you have other suggestions with Stocks similar to these two ?
Thanks!! I apprichate any feed back
FAS is breaking out its going to break resistence here at 24.79
Where is everyone ? Lets trade this and faz
PEACE
With this morning's jobs report, FAS will crater at the open. But that may leave a good chance for a quicky flip today, if the market over-reacts at the open.
I wasn't in either FAZ or FAS today. The JPM earnings, while they did beat estimates, were bothersome because of the weakness in the retail banking part.
How's that FAS pop. HA HA> Should have bought FAZ like I told you tirebiter.
FAS should pop on earnings news from JP Morgan.
Bank of America reports Friday. FAS/FAZ are going to be active.
I don't have Private Message, so I can't respond that way.
There are no plans to split FAS one way or the other, and there is no dividend. If you are talking about the links in the I-box, that has already happened. The links are there to provide a historic perspective on how FAS/FAZ operates. I've updated the I-box to indicate that more clearly.
I don't recommend buying FAS except as a short term play on daily events, and especially not to hold FAS for a long term. Unless you are willing to glue yourself to a news feed concerning the financial service industry, please don't buy FAS or FAZ.
Hi...overslept today. Well, a friend bought Fas and still has..he made a few cents but believes will go higher and I do to...cant wait till tomorrow. I am glad have found this site and you too...Looking forward to growing with everyone with Fas
Where are you getting this information?
Hi Have just started getting back to trading and so glad to learn about Fas dividend and future split.. I hope to get in tomorrow if it is not too late.. I just signed up to recieve information on Fas and I love this site and thank you for being here.. goldengirl333 Christina
You need to be in FAS right now. There is going to be a whole cascade of dividend hikes and share buybacks to be announced by financial firms.
Good news on the latest round of stress tests. FAS spiking on the news.
Hi Everyone..just starting to learn the intricacies and nuances of fas and faz. I would rather be in either of these than any stock as a stock can go broke and at least.. I believe there is the chance of profits with patience. I hope anyone will let me know anything they learn on these two great etf s as I am trying to learn as much as I can because I also like there strong personalities. Sincerely, goldengirl333 Christina
Ty P.T. for your quick and excellent reply. I have a better understanding of the 2 ETF's now.
GLTA
jackson
You'll just have to accept it. It's the way these funds work.
These are not stock index funds. They are composed of derivatives. Like all derivatives, there is more to the price than just the underlying. The price is affected by time and changes in volatility.
Some of the derivative swaps may be very short lived, in fact they may only exist for a day.
One important thing to note is that FAS is composed of long stock holdings as well as derivative swaps and government bond funds, while FAZ is composed entirely of derivative swaps and government bond funds. Since the delta on long stocks is always fixed at 1.0 and can never move, FAS is less subject to time decay and volatility grind down than FAZ is.
CaptainRedneck please forgive my ignorance, but i am also trying to learn about these types of ETF's. If it's harmful to investors why do they rebalance every day? I understand they are advertised as trading vehicles only. But wouldn't these etf's also be great investments if they didn't rebalance daily. Yes you'd have to watch them closely, but in a good bull or bear market depending on which fund you invested in it seems to me they could be very profitable for investors too. Therefore the etf administrators would get both traders and investors buying the product. I'm sure i'm missing something, but its puzzled me since these types of etf's have come out.
Thanks!
jackson
Thanks for your input Porgie, I'm trying to become a more balanced trader then just a penny flipper. Input from experianced traders like yourself are much appreciated, Experiance is priceless.
I think it may create more demand from income investors who may have dumped these when the dividends were reduced or taken completely away.
I think restoration of the dividend is a very positive development.
That said, I don't invest in FAS or FAZ because of what I think will be the impending trend. The decay factor is too overwhelming. Just get up early, pay attention to Asia, Europe and Becky Quick and buy FAS or FAZ when there is a compelling reason.
Although I do buy FAS and FAZ outright, for the most part I like long dated puts, especially in FAZ and I buy them when implied volatility is low.
The Devil Is in Daily Rebalancing
Most leveraged ETFs get their leverage only for the day and then at the end of the day, that leverage resets, which can hurt you in the long term. This is the biggest profit siphon when investing in a leveraged ETF.
*Check out what happens if the Russell 1000 index moves up 3% today and drops 3% tomorrow and you are long the FAS.
If you bought FAS today at $30, it would move up about $2.70 (9%). At the end of today, the ETF would actually take those profits and invest them the next day starting fresh (this is rebalancing).
So tomorrow, you now have $32.70 invested at three times leverage, so if the Russell index then drops 3%, the FAS would drop 9% (of $32.70) and you would now lose $2.95, leaving you with a net loss of $0.25, even though the underlying index is actually flat.
http://etfdailynews.com/blog/2011/01/21/the-truth-about-leveraged-etfs-faz-fas-drn-dust-tza-tna/#more-26198
Would it be wise to take positions in the Banks before march?
U.S. Bancorp, J.P. Morgan Chase, PNC Financial Services and Wells Fargo
This story needs to be considered the number one driver for the price of financial shares for the remainder of the first quarter of 2011.
FED will soon release banks to restore dividends to shareholders
Haha, ETF porn. It's true, when I first heard of these I was drooling at the opportunity and couldn't wait to start trading them. My whole trading strategy is based around them now.
That link is a joke. FAS isn't a stock anyway.
Educate yourself, come on back and we'll talk FAS/FAZ.
http://www.direxionshares.com/pdfs/Financials_Bull-Bear_Fact_Sheet.pdf
Aloha, My name is PhotoChick, & this dude Cifi turned me onto FAS "GO Bullzzzzzzzzzzz"
Aloha my name is cifi and i'am a $FAS junkie $$$$
Good article for those considering an "investment" in FAS.
http://etfdailynews.com/blog/2010/11/29/investors-still-haven%E2%80%99t-understood-leveraged-etfs-dpk-faz-fas-drv-drn-tza-tna-bgu-bgz-erx-ery-edc-edz/
Today is a short term options expiration for FAS/FAZ. Friday afternoon, last hour could get exciting.
The Federal Reserve is reportedly going to loosen up some of the restrictions on bank dividend payments to shareholders. The guidlines are supposed to be revised by the end of this month.
If that happens, then yes, I don't think FAS $30 by the end of November is out of the question.
RIFIN has broken resistance at 800 for the first time since last May.
FAS is a play again.
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Welcome
The key word to remember here is DAILY.
FAS/FAZ are not intended as an investment, but as a trading tool designed to reflect the DAILY moves of the Russell 1000 Financial_Services Index X3.
Historic Develpments for FAS from Direxion
Forward Split for 5 Direxion Bull ETFs
FAS included in Dividend Distribution
Each day Direxion publishes the current makeup of this ETF: http://www.direxionshares.com/holdings_fas.csv
Link To Direxion's FAS fact sheet: www.direxionshares.com/pdfs/Financials_Bull-Bear_Fact_Sheet.pdf
Link to fact sheet regarding Russell 1000 Financial_Services Index: www.russell.com/indexes/PDF/fact_sheets/US/1000Financialservices.pdf
Link to Prospectus: direxionshares.onlineprospectus.net/direxionshares/FAS/index.html
Link to Summary Prospectus: direxionshares.onlineprospectus.net/direxionshares/FAS/index.html
Link to Russell 1000 Financial Index (RIFIN) chart
Link to Dow Jones US Financials
It is important to understand the unique characteristics of leveraged ETFs, and in particular Triple Leveraged ETFs.
While these funds are designed to reflect a daily 3X change in the underlying assets, It is important to understand that over an extended period of time a leveraged fund may actually UNDERPERFORM the underlying assets represented!
Important Reading:
www.direxionshares.com/pdfs/DS_Paper_011210.pdf
www.finra.org/Investors/ProtectYourself/InvestorAlerts/MutualFunds/P119778
Good video:
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