FAZ Reaching Jan 2009 Lows Divergence or Mispricing? / Stock Rake

FAZ Reaching Jan 2009 Lows Divergence or Mispricing?

Home / Market Comments / FAZ Reaching Jan 2009 Lows Divergence or Mispricing?

March 16, 2009

I see that FAZ reached a low not seen since Jan 8 2009. That has to be a joke, because the stock market is lower than that price level as well as the XLF. I know FAZ is not the XLF, but still. Something is wrong with the pricing. Either its telling us the market is going higher or FAZ got cooked to the downside.

I’m long FAZ, I bought more this morning, and I may add eod as I have it as being oversold.

Tags list

Where Is The Don’t Buy The Bottom Talk?

Leveraged ETFs, Leveraged Funds, Technical Analysis, Trades
Still short. Friday sucked, today was nice. We should move to new lows. However, this is likely to setup a nice reversal once again. Trend is your...

What Might Happen Tomorrow

Leveraged ETFs, Leveraged Funds, Technical Analysis, Trades
Which pattern is going to happen? I think there is a chance of both. A possible slip to touch support and a pop. If we gap up and run we gap up and...

Still Short Heavy and Starting To Pay Off

Leveraged ETFs, Leveraged Funds, Technical Analysis, Trades
I’m still short (heavy since 8-14-10 close). Today I panicked a little bit and closed out my FXP, FAZ, and EDZ with the morning pop. I also...

Still Short Market Now Acting Correctly

Leveraged ETFs, Leveraged Funds, Trades
When I posted last Friday, that the market is oversold and I don’t care, I should’ve cared. It would have been a lot better for me to...

http://www.stockrake.com StockRake

I couldn't think of it at the time, FAZ is based on the RIFIN.

My point is still valid. RIFIN is lower than 1-9-09, yet FAZ reached a low today lower than 1-9-09.
rose2797

How low do u think it can go. Do u think it advisable to take loss here
http://www.stockrake.com StockRake

They are definitely squeezing the shorts today.

We almost reached 773.14 on the SPX. A few pennies away. May have been enough.

FAZ has an oversold signal that is all I can say. It works more than it doesn't. Example:
The same signal was on for FAS on 3-6-09. Look how that turned out.

Without a doubt today is the bullshit day for FAZ. What I mean is this is where the squeezing is causing the most emotional pain, but doesn't change the technical picture. I may even buy FAZ calls today.
http://marginalizingmorons.blogspot.com/ CaptiousNut

It's time decay. Much has been written on this subject.

http://marginalizingmorons.blogspot.com/2009/02…
http://www.stockrake.com StockRake

Yes its better shorting, but this move for 5 days seems more than just time decay. I could be wrong.
stoxtar

It's incredibly difficult to find shares to short for these inverses. I think every time there's a buy, there's an automatic short generated or something. Man, I guess you never played FXP or SRS in the good ole days. This compounding decay is brutal
http://www.stockrake.com StockRake

No I've been playing this things since day 1 and before that Rydex since 2001.

I'm aware of the time decay, but there was an exceptional circumstance that occurred today when it hit the lows of 35 and probably the reason it had a 20% move off that level inside a few hours.
hi

ouch
http://www.stockrake.com StockRake

We opened at 38 and closed at 42 the day I posted this. What?
http://www.stockrake.com StockRake

We opened at 38 and closed at 42 the day I posted this. What?

http://www.stockrake.com