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FAZ/FAS - Trading

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This group is designed for traders who want to discuss the Daily Finan. Bull 3X Shs(ETF)(FAS) and Direxion Daily Financial Bear 3X Shares (FAZ) stocks

Website: http://daytradingstockblog.blogspot.com/search/label/fas%20technical%20analysis
Members: 32
Latest Activity: Aug 30

What stocks are in FAS/FAZ inverse etf's

Daily Finan. Bull 3X Shs(ETF) (FAS) and Direxion Daily Financial Bear 3X Shares (FAZ) are inverse etf's that offer 3 times leverage. These leverage etf's have become very popular as ways to trade the financial stocks but avoid buying on margin.

FAS: The investment seeks to replicate, net of expenses, 300% of the daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.

FAZ: The investment seeks to replicate, net of expenses, 300% of the inverse daily performance of the Russell 1000 Financial Services Index The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is nondiversified.

Buying FAS is basically buying a certain basket of financials with 3x leverage - Buying FAZ is basically shorting ( selling short ) a basket of financials with 3x leverage.

The problem that most investors/traders face with buying either of the two stocks is that they don't know how they work. When FAS was $2.50 in March, FAZ was trading at $100. Since then, FAS went to $5, FAZ to $50 - then FAS to $7.50, FAZ to $25, then FAS to $10, FAZ to $12.50.....and many more huge moves that killed the FAZ. My theory is that if the market gets even stronger, they will have to so some kind of reverse split or FAZ will go under $1.

Top 10 holdings - Stocks that are in FAS/FAZ

Bank of America Corp. BAC - The Bank of New York Mellon Corporation BK - Goldman Sachs Group, Inc. GS - JPMorgan Chase & Co. JPM - Morgan Stanley MS - Russ 1000 Finan Indx Swap - Travelers Companies Inc (The) TRV - U.S. Bancorp (DE) USB - VISA INC. V - Wells Fargo & Co. WFC

Discussion Forum

FAZ Deterioration 2 Replies

Started by ray ups. Last reply by ray ups Jun. 10, 2009.

how much will FAS go up today 12 Replies

Started by Stocks_9. Last reply by Lejeune Bauvil May. 31, 2009.

FAS - FAZ Technical Analysis for May 18th

Started by Stocks To Buy May. 17, 2009.

FAS - FAZ on Twitter - Tweets about FAZ & FAS - What are they saying?

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Comment by Stocks To Buy on July 21, 2010 at 8:42am: FAS has split since my last message.....I am a big fan of FAS below $19 now

Comment by Stocks To Buy on February 22, 2010 at 3:24pm: Daily Finan. Bull 3X Shs(ETF)(FAS) just broke $75 today....next resistance is located at $80

Comment by Stocks To Buy on February 10, 2010 at 3:19pm: Yes I look at these moving averages as well......FAS hit $66.57 today, the 200 day MA is located at $66.56.

Comment by Terry H on February 7, 2010 at 6:05pm: I show the 200-period moving average above current price at 66.28 on Feb 5, 2010.

Comment by Terry H on February 5, 2010 at 9:40pm: What is your system for trading FAS? I am trading FAZ just by following the moving averages.

Comment by Stocks To Buy on February 5, 2010 at 5:03pm: FAS has been high on my radar this week and is a stock I am currently in. I must have traded it atleast 5 times today but sold out of most of my position a little early on the final surge.

I will be a buyer of any pullbacks below $62 next week. I will be selling my current position if FAS is trading above $68 on Monday.

Comment by Live Rich on January 22, 2010 at 3:39pm: Nice movement with FAZ today :-)

Comment by Stocks To Buy on January 22, 2010 at 3:28pm: Almost three months later, I am buying FAS at $70 again....will add more on any weakness. FAS is back to being a volatile trading stock again!

Comment by Stocks To Buy on October 30, 2009 at 3:19pm: OK, FAS is back in an area where I will be actively trading it. $65 is support that MUST hold on a closing basis. A break above $70 would be very bullish