A few minutes ago BAC was 9.47, and FAZ went down to 8.27
then BAC went down and came up to 9.30 (see still 17 cents less than previous value), during same time FAZ went up and came down to 8.20
BAC 9.47 FAZ 8.27 few minutes later
BAC 9.30 FAZ 8.20
This way. few days later. even if banks do bad, FAZ wont get that higher.. over the time. it is losing even if banks r losing !!!!!!
Right on. In fact, look at the weekly chart of faz and rifin. rifin can lose a couple percent, and faz can be DOWN for the week.
Unless you trade this on an hourly basis currently, you will get farcked.
Now if you can get in on the turn and crack in the financials, and we can put a few down days together, you can be looking at 100% minimum in a week. Its all about timing and surviving the whipsaws.
faz is not only depends on banks
Index Sector Weightings
Banks Diversified 10.94%
Diversified Financial Services 6.11%
Insurance: Multi-Line 8.10%
Real Estate Invt. Trusts (REITS) 23.02%
Financial Data & Systems 11.57%
Insurance: Property-Casualty 14.51%
Securities Brokerage & Svs. 4.12%
Asset Mmgnt. & Custodian 10.72%
Consumer Lending 0.94%
Banks: Svgs/Thrifts & Mort Lend 5.43%
Insurance: Life 3.29%
Commercial Fin. & Mort. Co. 0.89%
Real Estate 0.95%
Some of that is market rock and roll, as decay doesn't set in until end of day.
Your only hope to make money is to guess that the Geitner set up to make all the banks pass the stress test if some get this hand out and some get that bailout--doesn't sell to a disbelieving crowd--the floor trader CASHIN for UBS thinks its lose lose for anyone who can count on fingers and toes.
There are so many fictions being written into scenarios that lemmings are jumping into it makes you wonder.
If you want to lock in something besides daytrading, your only hope with this ETF is to sell an in the money covered call due May for seventy five cents or $1.25 profit, and hope it doesn't decay more than another seventy cents.
I said decay, not move with the market, which is a whole other issue.