Direxion Daily Financial Bear 3X Shares (FAZ)

[FinancialAdvisor]

Well let me simplify this for you, being that the goal of this ETF is to pull -300% of the Russell 1000 Financials...

Here's the 3 major previous runs that this stock has had,

11/6 - 60.22 to 201.86 - 11/21
1/6 - 32.57 to 88.67 - 1/20
2/9 - 37.82 to 115.5 - 3/6

The percentage gains respectively of these 3 major runs are 235, 172, and 205%.

Of course, we could be in the midst of the climactic wave lower here as far as the banks go, especially if the rumors about the banks right now circulating are true, but if history is any guide, to expect a run over 600% at this point is ridiculous.

It's very easy to throw off a compounded gain on this ETF, 2 days of the markets going up 3%, and all of a sudden this ETF has a loss around 25%, keep that in mind.

Given the 3 biggest gains this stock has had since its 11/6 inception, I'm thinking $10 is possible and a bit more realistic then $30. Eventually I'd imagine a split would be done to increase the cost of the ETF, that's just how this vehicle works, it's going to be constantly eroded in value since it's a -300% ETF, same goes for +300% ETF, they're best designed as trend-traders.