Some Trading Thoughts

ezch

I was looking at some 2X/3X ETF charts, and found some interesting
patten, which, if trading appropriately, may yield some low risk,
high return opportunity.

 

Using FAS/FAZ as example here.

On begining of Noverber, when FAS/FAZ first introduced, they both
traded around $60, if we bought 100 shares each at that time, the
total cost is about $12K, at Noverber 21 low, FAS is about $10, FAZ
went to around $200, if you sold both, will bring you total over $20K,
if market went another direction, I guess you would made poistive
return too.

Now, this morning, FAS/FAZ both sitting between $30-40 (I don't
understand how come both FAS/FAZ sit at this range, while both sit on
around $60 at begining of NOV, I'd appreciate it if anyone would
comment on it).  If we bot both again, I guess we would do well on
this trade, no matter market go south or north later, as long as it go
big, which I believe it will, since the one drop from this level is
limit, while another may go crazy to triple digits like FAZ did it a
while back.  

This is just my random thoughts while looking those charts lately, and would like to hear some comments from everyone here.

Thanks

Jiang370

If you bought both when they were introduced and held until today, the total value would be cut into half.

goodluck8

TRUE. :(109):