FAZ

Direxion Daily Financial Bear 3X Shares

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FAZ

Direxion Daily Financial Bear 3X Shares

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jsc52033

01/10/12 11:27 AM

Post #14,456

Re: #14,455: @Porgie Tirebiter - RIFIN will be in the mid 740s today

Porgie you were right. I do have an order in to sell TNA. looks like time to switch. May be a day early. Looking to do either faz or tza.

Porgie Tirebiter PremiumMember

01/10/12 7:48 AM

Post #14,455

Re: #14,434: @jsc52033 - Not sure you will get 33.35 looks posible.

RIFIN will be in the mid 740s today and FAZ will go below $33, a little sooner than I had calculated.

And RIFIN is still below the 200 day moving average.

ddls

01/07/12 2:03 PM

Post #14,454

Re: #14,451: @optiontrades - FAZ is going to be the winner this year.IMO

Looking for that 2012 effect are we?

Fishpert

01/05/12 3:56 AM

Post #14,453

What the flip does this mean? http://www.bloomberg.com/news/2012-01-05/nyse-arca-threshold-securities-for-jan-4-table-.html?cmpid=yhoo

rocco2

01/03/12 3:30 PM

Post #14,452

Re: #14,451: @optiontrades - FAZ is going to be the winner this year.IMO

MORGAN STANLEY: Here Are 3 Reasons Why Stocks Are Going Down In 2012

http://www.businessinsider.com/morgan-stanley-adam-parker-sp-500-2012-2012-1

However, all warn that Europe remains a wild card. Most assume a eurozone recession in their base case scenario. But should Europe's debt crisis escalate and contagion ensue, all bets are off and stocks will tank. Then again, if the crisis is contained, then most would argue that the sky's the limit.

Read more: http://www.businessinsider.com/top-equity-strategists-forecast-2012-2011-12#ixzz1iQf9peUd

Sound like volatility will be with us threw the new year !

optiontrades Free

01/02/12 8:58 PM

Post #14,451

FAZ is going to be the winner this year.IMO

Fed Up

12/29/11 2:15 PM

Post #14,450

Re: #14,447: @Porgie Tirebiter - Not to me it doesn't. These funds

Porgie and Hedge-funder:

Thanks for the excellent posts and insights.....off to do some study!

Happy New Year and Best Trading in 2012

Da Ghost

12/29/11 1:27 PM

Post #14,449

Re: #14,448: @hedge_funder - I agree to an extent as if they

They are engineered to decay ..

to often folks look at them as an investment . .when they are a tool of protection ..

hedge_funder Free

12/29/11 11:03 AM

Post #14,448

Re: #14,447: @Porgie Tirebiter - Not to me it doesn't. These funds

I agree to an extent as if they go up 15-20% consecutively which has happened but yes, you must keep enough cash not to get called. Anyways in the rare times that happens, well short them after those spikes.

Just look at a chart of RIFIN to FAS/FAZ and you will see the decay factor over time...also DRV/DRN--look at all reverse splits since inception,

You can also hedge with options and cash in on those and sell covered calls.

Anyways, look at the SLV 3x leveraged ones now as they ran aggressively. Sam thing will happen to them

Porgie Tirebiter PremiumMember

12/29/11 10:56 AM

Post #14,447

Re: #14,444: @hedge_funder - shorting FAZ or ANY 3x leveraged fund makes

Not to me it doesn't. These funds have high margin requirements and are capable of some pretty serious moves against you while you are holding the short position. The cost of margin is probably going to eat up most of the time decay advantage.

In addition, you would have to hold a lot of cash in your account or risk liquidation at a price far higher than what you got for the shares, and forced liquidation of unrelated holdings to pay the difference.

Huge, huge risk. Why go there?

It is far safer to take a hedged position in the inverse fund than to short shares directly.

Porgie Tirebiter PremiumMember

12/29/11 10:40 AM

Post #14,446

Re: #14,445: @Fed Up - Porgie: (neophyte here)

The distributions are not regularly scheduled, and they are not announced until after the market closes on the record date.

FAS has paid a dividend five times since inception, but FAZ has never had one. Although it is possible for the bear funds to distribute, it is rare because of the way they are constructed.

I was in ERX, the 3X energy fund once when it paid $4.65 per share. It was pure luck on my part, but it was definitely a "Whoopie!" moment, as it was greater than a 10% yield paid all at once, and in a tax free account for me.

http://www.direxionshares.com/etfs/distributions_qa.html#1

It's excellent that you read the prospectus. There is also an on-line course available. It's designed for brokers, but you come away with a much better understanding of what these funds are.

Fed Up

12/28/11 12:51 PM

Post #14,445

Re: #14,439: @Porgie Tirebiter - Of course FAZ will get to $33, it's

Porgie:

(neophyte here)

Thanks for your comments.....they are helpful....

I just read the FAZ Propsectus and see nothing in it about a distribution date....approx. when does it occur.....

Happy New Year!
FedUp

hedge_funder Free

12/27/11 5:32 PM

Post #14,444

Re: #14,430: @Porgie Tirebiter - You shorted FAZ??

shorting FAZ or ANY 3x leveraged fund makes complete sense over time with the awesome decay in your favor..looking forward to more reverse splits

Fed Up

12/27/11 5:05 PM

Post #14,443

Re: #14,442: @Weltman - It wouldn't surprise me if FAZ rebounded until

In my less than analytical opinion the wall streeters are going to make sure that the year ends on an up note so that the market is up for the year......

Then they will spin the first few weeks or months of 2012...at least until the euro gov's spark up again....and perhaps then we will see FAZ go to work.....

Rec you read Porgie's post.....I believe he is more in tune with the forth coming markets ......his call is 33 and change on FAZ...then get in......

I like you (probably) knee jerked in at 39 and down...and now have to either take my medicine or sit tight.....think I'll have another Conmemorativo margie and contemplate!

Weltman

12/27/11 11:50 AM

Post #14,442

Re: #14,441: @Fed Up - Likely dress up for New Years!

It wouldn't surprise me if FAZ rebounded until mid-january. However, I'm not sure if I'm willing to hold that long here. More so looking to get out at 40.

Technically speaking, my bet is that the S&P works its way down and bounces off of 1225 unless we get some really bad news. 1225 is down 3.2% from where we are now. A 3.2% drop in the S&P could easily give the FAZ a 9.6% pop to 40.

Fed Up

12/27/11 11:41 AM

Post #14,441

Re: #14,440: @Weltman - Anybody else think the S&P has hit resistance

Likely dress up for New Years!

Then the restart of the european debt debacle......while the USA debt is off the charts with off book fed loans to our defunct banks as well as european central banks....there is no cure for the tens of trillions stolen by the wall steeters and banksters and oil crooks......

IMO little opinion FAZ looking good past mid-January!

Weltman

12/27/11 11:16 AM

Post #14,440

Anybody else think the S&P has hit resistance and will make its way down in the near term from here?

If so, good for FAZ

Porgie Tirebiter PremiumMember

12/25/11 10:11 AM

Post #14,439

Re: #14,434: @jsc52033 - Not sure you will get 33.35 looks posible.

Of course FAZ will get to $33, it's a mathematical certainty. It would probably take only about 760 on the index to do it this week, 740 to 750 to do it a month from now.

The last time FAZ went below $33 (pre-split) was back in August 2009 when the index went above 650. FAZ has never recovered anything close to it's value from that time. Even when the index hit 610 on the Oct. 3 low spike, FAZ never got above $16.40 pre-split.

Remember, both FAZ and FAS are designed to lose value against the index they track.

http://stockcharts.com/h-sc/ui?s=$rifin

Fishpert

12/24/11 3:02 PM

Post #14,438

Retail Investors Pull $132 Billion From Domestic Equity Funds In 2011, 33 Of 34 Sequential Weeks Of Outflows

http://www.zerohedge.com/news/retail-investors-pull-132-billion-domestic-equity-funds-2011-33-34-sequential-weeks-outflows

Fishpert

12/24/11 2:16 PM

Post #14,437

Re: #14,436: @jsc52033 - Fishpert are you now long FAS or what?tia

I'm long FAZ and shouldn't be. I bought CEF to counteract FAZ potentialy going down a couple weeks ago at $22.45. Of course they both went down. There's a good chance one or both will bounce here.

My gut tells me to liquidate FAZ and buy NUGT for a big bounce then rebuy FAZ. What's keeping me in FAZ is the horrible news, but Bernanke's interference is costing me big time both in my trading and interest at the bank.

I'm patiently waiting for the new year to bring in a big drop in the markets. FAZ daily looks grimm, weekly some hope. After this chart plays out I will have to reevaluate everything.

jsc52033

12/24/11 11:32 AM

Post #14,436

Re: #14,433: @Fishpert - FAZ is junk. Bernanke won't let the

Fishpert are you now long FAS or what?tia

jsc52033

12/24/11 11:31 AM

Post #14,435

Merry Christmas to all

jsc52033

12/24/11 11:29 AM

Post #14,434

Re: #14,432: @rocco2 - Faz ain,t don yet. looking to load up

Not sure you will get 33.35 looks posible. I can't find 33 in the last 2 years. I intend to switch out of tna near 52 then take what I can get that looks best on faz or tza.May split and do someof each

Fishpert

12/24/11 12:44 AM

Post #14,433

Re: #14,432: @rocco2 - Faz ain,t don yet. looking to load up

FAZ is junk. Bernanke won't let the markets go down.
http://globaleconomicanalysis.blogspot.com/2011/12/ecb-holds-off-bond-purchases-italian-10.html

rocco2

12/23/11 3:17 PM

Post #14,432

Faz ain,t don yet. looking to load up after the 1st of the year. 33 would be nice. wait till italy trys to sell billions of bonds next week.

jsc52033

12/22/11 2:04 PM

Post #14,431

Re: #14,430: @Porgie Tirebiter - You shorted FAZ??

No I did sell that possition to buy TNA.So far very happy.

Porgie Tirebiter PremiumMember

12/22/11 1:59 PM

Post #14,430

Re: #14,428: @jsc52033 - exited shorts positions went long TNA 42.90

You shorted FAZ??

That doesn't make any sense.

Porgie Tirebiter PremiumMember

12/22/11 1:56 PM

Post #14,429

Last time FAZ traded around $37.00 was at the end of October, and the RIFIN was above 760.

Today the RIFIN is at 725.

So FAZ has experienced a deterioration of just over 5% in value in just under two months.

I'm calculating that a return in RIFIN to the 200 day moving average would put FAZ at about $33.00.

I have some January 50 puts which I picked up for a hedged play last fall. When I sold the FAZ, the puts were so under water they weren't worth selling. But at FAZ $33, they will be Monsters!!

jsc52033

12/22/11 12:14 AM

Post #14,428

exited shorts positions went long TNA 42.90

Fed Up

12/20/11 6:23 PM

Post #14,427

Re: #14,426: @hang ten - Very glad I sold at 44.7 yesterday.. Santa's

Me Too!

All aboard..............the train is leaving the station!

hang ten

12/20/11 5:01 PM

Post #14,426

Re: #14,425: @hang ten - Still looks like some life in the ole 'FAZtastic';-)

Very glad I sold at 44.7 yesterday.. Santa's coming to town!! lol

hang ten

12/19/11 6:39 PM

Post #14,425

Still looks like some life in the ole 'FAZtastic' wink

rocco2

12/18/11 10:33 PM

Post #14,424

Re: #14,423: @Fishpert - Now it's Japan

Imminent Defaults

"Greece, Italy, Japan, Ireland, Iceland, Japan, Spain, Belgium, Japan, Porutgal, France, and have we mentioned Japan !!!!

warning signs, and which countries are already screwed?

http://articles.businessinsider.com/2011-12-01/wall_street/30462012_1_madoff-warning-signs-japanese-situation

2012 not looking so nice

Short it !!!

Be happy !!!

Fishpert

12/18/11 10:17 PM

Post #14,423

Re: #14,422: @rocco2 - Looks like a santa rally, with raindeer, slim.

Now it's Japan

http://articles.businessinsider.com/2011-11-26/markets/30443752_1_dutch-politician-eurobonds-neuro

Japan Is A Giant Madoff-Like Ponzi Scheme That Will Blow Up Starting In The Next Few Months

http://articles.businessinsider.com/2011-12-01/wall_street/30462012_1_madoff-warning-signs-japanese-situation

rocco2

12/18/11 9:19 PM

Post #14,422

Re: #14,421: @Fishpert - Brits.

Looks like a santa rally, with raindeer, slim.

looking to Loading up before Bears wake New Years Day!!

would like a position in the low 40,s.

Fishpert

12/16/11 4:50 AM

Post #14,421

Brits.

http://www.telegraph.co.uk/news/politics/8959865/French-leaders-declare-a-war-of-words-on-Britain.html

Fishpert

12/13/11 1:00 AM

Post #14,420

Italian Bond Yields Near Record at 1-Year Auction

I thought I read over the weekend the yeilds were coming down, I guess not.

http://www.cnbc.com/id/45637171

Italy faces a more challenging test on Wednesday, when it is due to sell up to 3 billion euros ($4 billion) of its five-year benchmark bond, which saw yields climb above 7 percent on Monday.

eddyimano

12/12/11 6:38 PM

Post #14,419

Re: #14,418: @rocco2 - I think i,m going to break out the

I thought FAZ is going to have no chance, but it seems like FED wouldn't easily bail everyone out. It frustrates me.

rocco2

12/12/11 3:38 PM

Post #14,418

I think i,m going to break out the magic 8 ball. having serious trader fatigue.

rocco2

12/09/11 6:43 PM

Post #14,417

been long on fas will buy faz when the euro hits 1.36-7. The EU has a long way to go. to put a treaty together in 3 mounths is a joke. I doubt they can do it in a year

Fishpert

12/07/11 3:55 AM

Post #14,416

Coming to America?

Many Greeks are draining their savings accounts because they are out of work, face rising taxes or are afraid the country will be forced to leave the euro zone

In August, unemployment reached 18.4 percent. Many Greeks now hoard their savings in their homes because they are worried the banking system may collapse.

http://www.spiegel.de/international/europe/0,1518,802051,00.html

Fishpert

12/07/11 2:10 AM

Post #14,415

Re: #14,413: @paulmcmu - I would anticipate tomorrow to be a "snap

<<The weak bull is losing it's grip>> Bernanke is "saving the markets" from itself. Who is going to save us from Bernanke?

No matter what you've heard to the contrary, "there is QE3, the Fed is pumping money into the system," says legendary investor Jim Rogers, disregarding most every Federal Reserve statement over the last six months

http://tinyurl.com/dy567yf

MrRawlins

12/06/11 1:48 PM

Post #14,414

Re: #14,413: @paulmcmu - I would anticipate tomorrow to be a "snap

The market won't look at it as "concrete". The media will spin the news to a positive. It all will come falling down soon.. Look at charts... tic toc tic toc

paulmcmu

12/06/11 12:30 PM

Post #14,413

Re: #14,408: @Porgie Tirebiter - I would anticipate tomorrow to be a "snap

I would anticipate tomorrow to be a "snap back" day for FAZ.

The weak bull is losing it's grip. Tomorrow should be a better day. Who else believes that there will be no concrete resolution come out of frids meeting?

MrRawlins

12/06/11 10:01 AM

Post #14,412

Re: #14,399: @xZx - i consider it a buy signal whenever i

Nice Chart.

Porgie Tirebiter PremiumMember

12/06/11 9:41 AM

Post #14,411

The S&P downgrade watch seems to be overshadowed by the fact that European bond yields actually dropped today.

The financial sector seems to be hanging on to yesterday's gains for the most part.

So much for a FAZ snap-back I thought we would see.

Porgie Tirebiter PremiumMember

12/05/11 6:29 PM

Post #14,410

Re: #14,409: @paulmcmu - tomorrow to be a "snap back" day for

I'm a big skeptic regarding using technical analysis in a leveraged ETF like FAZ.

Maybe with the underlying index: http://stockcharts.com/h-sc/ui?s=$rifin

But that index has been strictly news driven for the last year.