I agree totally. I have 1000 at Avg 6.38, and am thinking of adding more on Friday. If I get the chance to grab another 1000 at 4.00, that will give an avg of a 5.20. I am confident there will be a pullback in the financials next week, bringing FAZ back to my avg. where I will dump 1/2 the holdings, and keep the rest til December. The holiday season is going to suck. Consumers will not be buying in bunches. If FAZ goes down to 2, then I will double down again. Eventually, I will make some $ on this because plain and simple - the financials are not going to make big money / start paying dividends anytime soon. Credit defaults are going to increase, and there will be more people walking away from mortgages. People need jobs, and they just aren't out there.
Funny you mention that. I work in real estate and have had more people call me within the past month (most of whom can't get refi'd-why? because they have an interest rate of 7.5% and they make their payments on time) And they said they're simply going to stop making their payments. People are tired of it! They see bad behavior being rewarded and they ask themselves-why should I be a law abiding citizen? Why do I care if my FICO score goes down the toilet? It's simple-they don't care. I've had past clients max out 2- 25k CC on new cards, furniture, vacations, etc. and then file for BK. This was part of the reason I purchased FAZ. Was it early-sure. But the effects of whats happening not be seen for another 7-10 months.
Ask yourself this- if 1/2 of america stopped/was late making their mortgage payment....Would they disclose it??? Of course not! Because the other 1/2 of America will stop paying as well and the snowball effect will continue.
GL to all. Win/Loose/Or Draw I'm hanging tight.
when the facts change I change my mind..what do YOU do? sorry but it ain't gonna happen..FAZ is a one day maybe two day trade only..take your losses and put your money to work..hope doesnt pay the bills..cash does, and 8.21 is not gonna happen..
You mean reading the book 'The Secret' doesn't apply in this case?? lol...don't worry about it. We'll make it back to $7-$9. At some point it'll become so cheap, people will start jumping on board. We've had a huge rally this week-anyone stupid enough not to lock in profits deserves what they have coming.
Yes I got 3190 at $6.639
Usually the best deals are made when you wait several weeks. For example Citigroup was 1 and it's now 4. WFC has also more than tripled. Being a short-term trader, I never wait that long; but I now notice that I've been missing these kinds of multiple-baggers.
Apparently it is beneficial to allow times to change a little bit
I've got 2000 at 8.06 ... I'll hold this POS till it goes back up or maybe to zero. I don't care I'm putting this POS on the back burner... And not going to worry about it anymore.
When this market turns it will flush all these suckers down the toilet like big turds...
And when it turns it will reverse to the down side by 1000 to 1500 points which will be healthy...
Good luck and all ways practice safe stocks :-)