FAZ - Direxion Daily Finan. Bear 3X Shs(ETF) NYSE Stock

[Shahaf]

this stock is mainly for day trade, they offeset it from day to day and they do admit it corrodes in time, a suggested play for this is to short fas,faz at the same time.....

it is a short of the russel 1000 x 3 or pretends to mimic it. i find it (and fas) to mimick my BAC or be very close to it which is a cool tool for me when i short (protect) my bac (used to have a large position until today)

as it is today its 11.8 on AH close if the panic wave will continue and if there will be a retrace of the last bull run it can and may be a really nice stock to have, especially if it will get to where it was before!

banks are really not as great as some (including myself) were hoping for its natural for them to correct downwards and this one is the stock for that exactly.

I see a violant agressive move down, will get in with a 100 shares stop at 9, i have a feeling that i will be either $300 poor(er) or a bunch $$$$ rich in the end of this week, its my opinion only, dont do anything before you make your own reserach

[thegreatgate]

Last night on chat I said FAZ will never hit $30 again in our lifetimes. I know it is flying now but think about a couple things:

1) It follows the rifin.x and the rifin.x is at 532.75 right now. From the January 6th year high close of 663 on the rifin.x it dropped down to a 338 low ( - 49% drop) which took FAZ from a January 6th close of $34 to the years day high on March 6th of $115 which is a 238% gain. But think about what the Dow did over the same period. The Dow had a January 6th close of 9,015 to the March 9th low of 6,547 (- 27.4%).....
January 6th
rifin.x = 663
dow = 9,015
FAZ = $34
FAS = $26
March 6th
rifin.x = 338......................................... - 49%
dow = 6,547 (March 9th)....................... - 27.4%
FAZ = $115 day high (closed at $104)....+238%
FAS = $2.32 day low (closed at $2.64).. - 91%

2) To match the unheard of devastation and declines of January/February you subtract 27.4% from the Dow's highest recent close of 8,131 which shreds 2,228 points and takes the Dow to a new low of 5,903.

3) If scenario 2 happened you could expect FAZ to go up 238% which would take FAZ from the $8.50 bottom to $28.73/share.

4) If FAZ did go to $30 or higher, where would that put FAS and UYG? FAS lost 91% of it's value from the January 6th high of $26 to the March 6th low of $2.32. So take the highest recent close of FAS ($9.75) and subtract 91%. You are left with an 88 cent stock.

5) Each time the market crashes FAZ is creating lower highs. November 21 set FAZ's record high of $202 but the Dow only bottomed at 7,552 back then......New bottom was about 1,000 points lower but only got FAZ to $115....

6) I think the market lows are in....We are not going to test 6,500 on the Dow again....but I could be wrong

*** FAZ will always be a nice play to go to when you sense a series of down days coming. It is also a great ETF to own right now. Good luck! ***

Current pre-market prices:
FAS: $5.97
FAZ: $12.62

[thegreatgate]

ETF Reverse Splits Have Arrived… More Looming? (FAS, FAZ) – 24/7 Wall Street
When we first floated the notion that Direxion may need to consider conducting a reverse stock split on its two Triple-Leverage cult ETFs for the financial sector, this was a notion that was not that popular despite the company’s hint that a reverse split was likely before the market temporarily interrupted that need. Now this morning we are seeing the Direxion Financial Bull 3X Shares (NYSE: FAS) and the Direxion Financial Bear 3X Shares (NYSE: FAZ) have adjusted prices to be based around reverse splits. It is the ex-date.

The bearish FAZ is splitting 1 for 10 and the bullish FAS is splitting 1 for 5. On an unadjusted basis, the FAZ close of $5.64 yesterday would imply a price of $56.40 if everything was equal and unchanged. On an unadjusted basis, the FAS close of $7.51 yesterday would imply a price of $37.55 if everything was equal and unchanged.

In pre-market trading we have the FAZ trading down at $52.75 and the FAS trading up at $39.00.

What will be interesting to see is how this affects the average daily volume. The FAZ has an average volume prior to the split of over 240 million shares and the FAS trades roughly 230 million shares per day.

As a reminder, the semi-annual report from Direxion itself panned the notion that these should be held for the long term.

We still think that more reverse splits or just some outright closures will follow this trend. Not just from Direxion, either.

Jon C. Ogg
July 9, 2009

[newmny65]

Might be a STUPID move but I bought 130 shares FAZ AH for 46.54- my plan is to hold for a bit until after financials report and my guess is we have some dreary days ahead and FAZ will give a pretty good spike.. It seemed appropiate to buy 130 shares on the 13th day---- Wonder how this will pan out????

[thegreatgate]

This is almost, not quite, but almost worth getting into. I'm looking to enter around $19.xx or $20.xx. This is for SHORT-TERM, if I am not green within one day, I will pack my bags and come back another day.

Last trade: $23.71
All-time low: $22.54 ob 8/24/09

[davecash77]

Originally Posted by thegreatgate

This is almost, not quite, but almost worth getting into. I'm looking to enter around $19.xx or $20.xx. This is for SHORT-TERM, if I am not green within one day, I will pack my bags and come back another day.

Last trade: $23.71
All-time low: $22.54 ob 8/24/09

I think the market has topped and could see a string of down days or sideways trading.Is this a good play to short financials or SKF ?

[thegreatgate]

SKF is a little calmer cause it's only 2x. On big down days you might see SKF do 6% and FAZ over 10%. If you have the timing right FAZ is better. If you are wrong, then SKF is better cause you won't lose as much!

Other thing is to short random financials and hope they drop more than the rest.

But I am still bullish, even at these levels. I think it is easier to make large gains spotting stocks undergoing a short squeeze, news break, momentum swing, good earnings, upgrades, etc. Or just do what I do and take a quick glance at the next Ru play. If the chart looks decent load up!!!

If I short something, it will be a quickie. AIG has tripled this month and closed today at $37.69. After hours last $39.29. I haven't looked at the chart but mid-$40s seems a little high, even though with the 20:1 R/S it's really only at $2.

[thegreatgate]

FAZ set a new record low today: $16.39 ($1.639 if you undo the 10-1 R/S).

Using a pre 10-1 R/S mentality I'm thinking $1.50 would be a good entry ($15), but $1.60 ($16) is not bad either. And I will surely load up the day FAZ hits $1 ($10) for the $1 boogie...

There will be another time (in history, lol) when FAZ makes a good swing trade. So far it has been terrible the last 10 months...

[newmny65]

People that dont understand how these 300% ETFs work can get burnt bad. Personally I try not to hold them overnight. The DIREXION website has some good info. It might be possible to buy and hold but the way the financials are running I believe the decay would not be worth it. I just dont see the panic and fear that occured in the markets in 09.

[namratasnv]

Originally Posted by newmny65

People that dont understand how these 300% ETFs work can get burnt bad. Personally I try not to hold them overnight. The DIREXION website has some good info. It might be possible to buy and hold but the way the financials are running I believe the decay would not be worth it. I just dont see the panic and fear that occured in the markets in 09.

Hi,

I think you are right as, this year even I dont want to see market to be like nothing as I have heard today, that stronger reports on jobs and manufacturing boosted stocks and Dow Jones industrial average goes up 70 points high this year.

Thanks