Although he looks alone, somebody wants him on the phone.
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I'm in FAS today.
With options expiration, there will be a lot of cash available for new positions. The VIX has dropped four points this morning. Options traders are selling volatility. I hate to sound too technical here, but it tells me that the professionals expect share prices to go from whence they came... Up.
So we filled the "flash crash" intraday low gap on the S&P?
Maybe it's time to look out above?
Looks like FAZ is going to roll at the open.
Options expiration today. It could be a wild ride.
I've made real good money with FAZ this week, but I must say that I'm getting a little tired of watching my investments get clobbered.
I would be real happy to make money with FAS next week, but you have to take the money the market is currently trying to give to you.
Especially the pop in volatility. I wasn't actually in FAZ today, I was in June 15 calls, so I got a two-fer. You always sell volatility. Those calls will decrease in value overnight, unless FAZ gaps up significantly by the open tomorrow. And counting on that would be a gamble.
Could be, but I sold out right at the close.
Gotta put that money in your pocket. Tomorrow is another day.
Nouriel Roubini is going to be on CNBC shortly. That should be worth at least a 50 cent jump for FAZ while he's talking.
The biggest problem with that scenario though, is that the "Investor Relations" department is standing by to dump shares into any spike that might develop.
And there is a lot of cash on the side. Short covering could come into play, driving the RIFIN up. Lots of reasons to be cautious.
But you want these to be illiquid. Don't you see? That's what moves these micro-craps. We're just sitting here waiting for there to be an imbalance to the buy side so it runs up a couple ticks. Suddenly it gets a bunch of attention, orders come in at market, and there aren't enough shares to meet demand, and very quickly... boom a spike!
But please stop it with "short selling" being responsible for current share price. That's just wrong. This stock represents a worthless shell, and that is what share price reflects.
Yes, it's illiquid. The bid-ask spread is 25 to 33% of total share price.
I didn't think it was necesary to answer the question because, as I said, you pointed it out yourself. You just don't see it, or want to see it anyway.
Are you saying that to provide liquidity, yesterday's long-sell vol required a short of 87.8% of the total vol?
Here is the answer: YES. That is exactly what that number means.
Short interest, that which is the seed corn for "MOASS" is a piddly 32 shares.
Margin calls will become a factor near the end of the day. People are going to have to sell shares against their will. Will we see RIFIN in the 750s today?
And options expiration tomorrow.
Wow.
LOL, you anwer your own question without realizing it. Yes, the difference between bid-ask is 25 to 33% of total share price, depending on the last tick. Like all micro-craps, this is an illiquid issue. The only reason it trades at all is because of the market makers. MMs aren't being evil shorts. They're just doing their job. If the MMs can't collect the difference, and put it in their pocket, then this will cease to trade.
If this trades a volume of 50,000,000 shares then the total to be made by MMs is only $5,000. They are barely paying any attention to this as it is.
Europe closed and RIFIN popped a little, but now fading again. Volumes have been a little low, so I don't think capitulation is a factor, just a lack of buying. IF volume picks up, and shares fall, this afternoon could be rough... good for FAZ.
But then again, fundamentals are getting a little too far whacked, and low volume could just mean that buyers are on the side waiting to come wading in when the bottom is sensed.
PinkInvestor: No email. Sorry, nothing personal, but I don't have any real knowledge beyond opinions I post publicly.
Wow, I've read some of the recent postings here. Very, very good information coming out.
That daily short list has been badly abused by propogandists since it's inception. Trying to understand the nuances of a market can sometimes be difficult, and is made additionally so when information is twisted to support someone's pre-determined agenda.
Daily shorting is a normal market function, especially in thinly traded issues. It is needed to provide liquidity in an illiquid market. It is the MM's job, that's why they exist. Most of these are covered within minutes, if not instantly. While T+3 is the rule, it's probably never an actual factor.
Short interest is a completely different animal althogether. And it is negligible in RMDM, because it makes no mathematical sense to short zero.
Good job here.
It has definitely paid off to have held FAZ for the last two weeks or so, because you have been able to capture a lot of value in the gaps. Today is a good example. But this is not a typical market. In a normal market, it never pays to hold a highly margined ETF.
http://www.direxionshares.com/pdfs/DS_Paper_011210.pdf
Wait, Wait... Don't tell me, let me guess.
The Investor Relations Department?
In my "trading" account I'm 100% cash, after selling out of a bullish position (FAS and FAZ puts) yesterday morning. I wish I would have swung to FAZ then, but I didn't, I was late picking up on that German move.
With these Direxion 3X funds, I just stick to FAS and FAZ. It's too much work if you spread yourself among too many of these funds, at least for my feeble brain.
FinReg is exactly what I'm talking about. Goverment has declared war on the evil financial institutions who dared to become profitable.
But today is Wednesday, it's not yesterday, and it's not Thursday. And markets do not move unidirectionally. At some point there will be a snap-back, there always is.
I don't care if I get my money from FAS or FAZ. And I still don't know which way to go today, if at all.
Goverments and regulators feel an overwhelming need to meddle in markets, and the result is uniformly bad. Attempts to artificially prop up stocks, bond, currencies, derivative swaps, whatever, invariably have the exact opposite effect because they spook the market.
But the lesson is never, ever learned.
Futures have all been rising since I started paying attention this morning. If the market opens lower, I may very well jump into FAS. Don't know yet.
They can call it what they want, but that looks more like a "shove back" to me.
Just my opinion.
Well, even if the share buyback was real, it was diluted straight down the ol' you know what chute this afternoon, wasn't it?
Yeah, I read the pretend quarterly report. I even posted a link to it here just to help everyone out, remember?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50168881
And right you are!
And all those shares dumped at .0003, that's not a good sign.
Three quarters of the pretend share buy back, wiped out just like that.
FAZ at 15, RIFIN at 790.
Markets are ignoring fundamentals. Oh well.
Good question. As I was reading that post there was an ad on the right side of the screen for a hotel I stayed in just two weeks ago (Aria). I had made the reservations on this computer.
Interesting.
Housing starts numbers are killing us here.
Got to see if the market can get past that news, and get going again.
I can't argue with any of that. It's the financials leading Europe higher today. Hopefully that will continue in U.S. markets.
Like you say, the bottom line here is that money is cheap.
The financial regulation bill is probably the darkest cloud out there today.
I don't trust T.A. a lot, and this guy calls the forward split a reverse split. But other than that, I agree with what he says: http://etfdailynews.com/blog/2010/05/17/the-direxion-financial-bull-3x-etf-fas-is-looking-oversold-bear-etf-faz-overbought/
RIFIN would have to drop well below 800 for FAZ to see $15 again. That's asking a lot. RIFIN is looking seriously oversold for the near term. And for the long term, FAZ at $15 will take a much lower number on the RIFIN. In other words, it gets harder and harder for FAS or FAZ to ever reach previous levels as time goes by.
http://etfdailynews.com/blog/2010/05/17/the-direxion-financial-bull-3x-etf-fas-is-looking-oversold-bear-etf-faz-overbought/
I believe that all the way, this is a trading tool. As an investment it's clearly a POS, no doubt about that whatsoever.
Now having said that, I am holding long shares in FAS, and FAZ puts overnight hoping for RIFIN to gap up in the morning.
I think it's real reasonable to see RIFIN back to 850 very near term. At that level I'll begin to worry again. But I think it's safe to say that it has overshot the current bottom.
It's just what I think.
Oh great, now they put Meridith Whitney on CNBC. What timing! Crap.
I'm not just long FAS, I'm now in $16 puts in FAZ.
Russell 1000 Financial Services Index.
It attempts to track the inverse of this index 3X, less expenses and fees. It is important to know that this is a Daily performance, and that both FAS and FAZ suffer miserably when compared with the cumulative moves of the RIFIN since inception.
http://www.direxionshares.com/education_literature.html
I've put some info together in the FAS i-box if you care to educate yourself as to what FAS and FAZ really are: http://investorshub.advfn.com/boards/board.aspx?board_id=14535
You can't lose more than you invest, unless of course you are buying on margin. And for most brokers, margin requirements are quite a bit stiffer than most stocks, so you need to have a heads up on that to avoid a margin call if you get a strong move against your position.
In my own brain, FAS and FAZ are the exact same thing, although they are actually constructed quite a bit differently.
Yes, long FAS. I was hoping for a gap up with it this morning. I made good money with FAZ calls on Friday, and bought FAS with the profit.
But alas, no gap up for RIFIN this morning, and I have no real feel yet for where the market will go today.
It hatched four times. What are you waiting for?
The FAZ $12 calls are gone, and I'm long FAS hoping for a gap up on Monday.
Wow, guess i did that just in time. Short covering in financial stocks was to be expected at the close.
Have a good weekend.
I let it sag through my sell target and held it. I think financials are going to fall into the close today.
I saw this when it was on the air this afternoon. Very good stuff.
http://www.cnbc.com/id/15840232?video=1494293316&play=1