You can only trade FAS & FAZ if Wall Street keeps the bank stocks in a 1.00-3.00 trading range.
You know the market went up 7 weeks in a row. I really doubt they can keep doing this week after week. As you can see less and less people are buying JPM at these price 33.00-35.00 Today.. you see JPM in the 32.00 range
It's showing signs of technical breakdown and overbought territory.
If they can keep JPM at a range of 30.00-35.00 for another 7 weeks.. Yes, it makes sense to daytrade FAS & FAZ back and forth. My gut feeling tells me JPM is about to break down and it could fall all the way to 25.00-27.00
JPM around 30.00
FAZ probably trade around 11.00-13.00
Let's say Wall Street decided to tank the market next month and do a 3 or 4 down weeks.
JPM tank to low 20s WFC down to 12.00-13.00 and so on.,
FAZ most likely will run to ($25.00-$30.00)
if they keep doing this trading range for 2 or 3 weeks.. both FAS & FAZ will decay to $5.00-$6.00
THE QUESTION NOW IS DO YOU THINK THEY CAN HOLD JPM AT $30.00-$35.00 FOR ANOTHER 2 to 3 weeks ??
up 7 weeks already up another 2 weeks .. up 9 weeks in a row