I made a good amount on FAZ and sold today at $19.35. I wasn't expecting that huge of a run in last hour so I shorted at $19.71 for 3k shares. As gut wrenching as it is to buy at $16.99 and watch it go to $16.75 is the same mentality here.
I am willing to lose if it gaps up over $20 and they throw baby out with bath water. Just playing the Monday up day but it may fail this time and I got a bad feeling now. I think I should have waited for 1085?
LOL, try living with 1000 shares of FAS @ 74, and 1000 shares of TYH @ 143. Oh yeah, and 7000 shares of BAC at 15.69. And only $20K left in cash. I'm going to have a dandy weekend. Eat my a** Goldman. Throwing out my money on that stupid GS trade led me to take this risk. I left for lunch and then meetings. Got back to my desk at 4:10pm and gulped. I'm disgusted, but I deserve it for not buying any downside protection. Actually, I did short GS today but covered at a loss in panic. I am such a sh*tty trader. I'm going back to a simple goal of making no more than $500/day on a small capital investment (perhaps a FAS/FAZ pair). I suck, bad. Pissed at Obama--even if he is doing the right thing. He should have notified me by email, first.
That is funny. Been there before. Options are even worse. Damn if I didn't buy those calls on FAZ at $16. Kind of like my BIDU at 386 calls before it shot up 4000%.
I do like AAPL next week, unless Obama is at ground hog day circa 2009.
Pete..., consider doing a covered call on up to 3000 shares to give yourself some protection. If the shares are called, then this might defray you short losses. I am concerned about the market going forward which bodes well for FAZ and bad for your short. Because of my concerns, I am buying small positions, selling at the money covered calls, and keeping a cash supply to protect my bottom by cost averaging.
The market seems to be "selling the news" this earnings season. Also, there are some serious political matters to consider including obama attacking the banks, the possibility that geithner might be required to step down and bernanke may not be approved. Even if you do not like Geithner or Bernanke, with Obama at the wheel who knows who he would renominate. Finally, I am concerned that Obama is weak and has been weakened this week, and this weakness may invite some of our enemies in this world to try something that might roil the markets. Net, I am acting like the tortise by managing my positions to make a little each month without risking and/or losing a lot.
You made a great move. FAZ will obviously gap down Monday, and continue to fall all week. You should have shorted more. Remember, no matter what, DONT COVER, since FAZ must inevitably approach zero (because of decay).
That is the question, do we get a bounce?
Looking at the 15 min 6 day chart, we are hanging on a neck line. We could either gap down and run, or gap down and pull back to the neckline or rally back to the declining trend line resistance above.
All I know is bears are in the drivers seat and have bulls by the balls and I am one by the balls right now. My luck the markets gap up but FAZ goes up or RIFIN goes down a notch. Bear can take this correction to another level very easily
Doh! That sucks dude. Here's a nicely annotated set of charts for you to obsess over. It is located in stockcharts.com under the public chart lists under the Free Charts tab. Best of luck to you.
My take, we will have few up days and few down days until the midline. It could even be alternating up and down days, but in anycase we head up slowly. Then we traverse down say starting around second week of Feb for a further 6 to 8 percent correction.
Just a quess!
Monday i see two possibilities.
Market may open lower and FAZ up and then market runs up and back down to little above where it opened.
Or opens slight higher and then runs down and back up to almost where it opened.
Oh there is also a wild possibility, it opens and runs up all the way up provided there is great news on weekend and Monday morning.
Either way, you will get a good chance to make a good trade.
THe last possibilities opens lower and runs down all the way is quite remote. This means we are in for a major correction.