FAS - FAZ Stock Analysis - 2011/2012

A lot of people trade both FAS & FAZ so I wanted to give some stock analysis on both.  Although, I only have to give stock analysis on FAS since they are inverse ETF's because if FAS starts breaking down, that would be bullish for FAZ.

Direxion Daily Financial Bull 3X Shares (FAS) recently did a 1:5 reverse split which now has it trading in the $60's.  From time to time, either FAS or FAZ will be subject to reverse splits.

Looking at the charts, FAS will hit resistance at $75.40 as well as $83.65.  If you see FAS close above $75.40, this will signal FAS has put in a bottom and is ready to break out.  I would then want sell Direxion Daily Financial Bear 3X Shares (FAZ) and avoid it in the short term.

On the downside, if FAS closes below $63, it has a chance to retest $56.  Right now, FAS can go either way.