UPDATE
29/June/09
I phoned Direxion on Friday and asked if they were doing a reverse split on faz/fas. The reply was it wasn't been discussed as of yet. The guy told me there was another etf that had been done and I probably heard about that but there was nothing happening as of yet with the two I asked about. That was on Friday June 26 2009. Then this comes to my attention today. I got it from Stockwits.com .
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This is one of the etf's I'm trading at the moment. I switch between the two depending on my view at the time in the market . Faz is a Direxion Daily Financial Bear 3X , while FAS is Direxion Daily Financial Bull 3X Shares . 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.
As you can see when the purple line which is the 15-period ma crosses the yellow which is the 40ma it gives a buy signal . Also its the opposite when it happens vice-versa giving a sell. When I sell FAZ I tend to switch to FAS to catch the run on the other side. The 40 ma crossed the 15ma on faz yesterday near the close which was my signal to sell. I switched to fas for a $500 profit in a few min and closed out all trades. Nothing is guaranteed with this method but it has it's merits.
These etf's are dangerous to hold for a long time as I and many others have learned . They have a natural time decay so will over time get down to the possibility of a reverse split. They should be only used for a day trading play and certainly not held for a longer time period. A week is to long in my book.
Double and Triple ETFs Decay Their Value Faster - By Design
Inverse exchange-traded fund
I'm showing this to let you know what I'm at these days and am not endorsing it as a play for you. Remember the stock market goes down as well as down lower, there has to be losers to have winners dont risk what you can't afford to lose . Everyone has their own ideas on how to play the markets and I for sure am no Jim Cramer thank God ;-) . Well that's my disclaimer done with, now do well with your trading........ Also not so long ago the Market was known to go up believe it or not.
You can get this chart here http://stocktiger.com/live/faz1540.php a site I would recommend as it is full of very useful tools for trading.
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