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.