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Direxion Daily Financial Bear 3X ETF Message Board

  • jsshootemup jsshootemup May 4, 2009 7:02 PM Flag

    FAZ, FAS, SRS will all go below $2 eventually

    This is not directed towards longs or shorts no pumping or bashing this is an informative message for anybody trading the FAZ and FAS

    The decay and arbitrage have become so immense that investors have to understand that when the FAZ goes down to the now scary price of $6.40 the move back up to $10 requires 3 times more force than before. The move back to $10 would hypothetically be equivalent to $13-14, from the prior bounce up essentially the underlying assets will mostly return to the same individual value when FAZ was $13-14 and now is only
    $10.... sounds crazy but it's true

    i.e. FAS at S&P 900 in late 08 was trading around $25-$30 and many of the underlying assets have reached the same levels as before if not higher, that should scare anybody long or short out of these ETF'S

    SRS
    FAZ
    FAS

    they are all doomed eventually, I have spent the last month tracking the arbitrage and mathematical theories behind these which by the way no broker even understands and these are so dangerous to hold onto for anymore than 1-3 days
    I can't emphasize that enough!

    There is an investigation being launched on Direxion currently from what I've heard and I suggest everybody to be careful in either position.

    I sold all my FAZ and SRS on friday due to the developing patterns and uncertainty behind these names the
    SRS has managed to fall 80% in 6 months while the index it's supposed to correlate to has also fallen almost 60-80% in that period? SRS is short that index for the record which should be impossible if they're working properly.

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FAZ
12.09-0.23(-1.87%)May 1 4:00 PMEDT