Don't forget there is a great possibility of a tremendous sell off at any given time, especially right now....consider going long the institutions you like and use faz for insurance (it is fairly in-expensive now)
The days of shorting financials are OVER as one cannot be against the FED with it's trillons to pour in and since it's happening with the complicity of the investment banks esp. GS. One can hope for small gains of 4-6% on FAZ with larger gains on FAS.
All that's needed is a change in trading strategy - THE TREND is your friend !! Play both along with other short ETF's i.e TBT etc etc and have some GLD.
Think of it this way... If the financials failed 100% tomorrow, going to zero, FAZ would go up 300%.... The only way FAZ would conceivably see $20 is if the financials dis a very very very slow bleed downward, and with a consistency that did not allow FAZ to keep resetting... FAZ is done. Not worth it... JMHO p.s. Been waiting for a good exit point, and while doing so, have lost over 50% additionally...dumbedazz me!
I thought 9 maybe 10 at one point at the absolute most but like you said financials aren't really going down and backed by the government and who's to say FAZ doesn't drop to the 2's like fas did months ago. It sure feels like it these days. So yeah 8 since it can't even hold 6+ anymore would be a gift at this point.