Monday, October 18, 2010
Pullback in FAZ
This pullback in FAZ looks to be a great opportunity to pick up the ETF at very reasonable risk exposure.
Just remember position sizing and the 2% rule, both of which are linked at the top right side of the blog under risk management.
6 comments:
I was in a meeting at the time, but saw that CNBC had a little bit on a STRONG DOLLAR. Anyone have the scoop on what they said? It looked like silver and gold started pulling back around the same time.
The dollar was stronger overnight, since the Euro has had a bit of a bounce the last 6 hours or so. GLD is kind of stuck in the range from Friday.
RE: Faz, just think about the banks and their situation. As far as being near a reasonable support level, FAZ is pretty much there.
How does the TZA trade look as well. They ran the Russell up over the last month or so. I would suspect that TZA is coiled and ready to spring as well. EDZ seems to be holding up well this morning...we might be on the cusp of our downturn. It would seem that the FED has been injecting money into the banks through these POMO repurchase programs. Kind of like a back door bailout without the taxpayer catching on.
Jack, you are the 3rd person to ask me about TZA in 12 hours. It looks good right now, there's accumulation in many timeframes including the 1 minute.
I doubt that it'll be a "V" recovery but it's on it's way from what it looks like.
Maybe I should rotate a little of my TZA to FAZ. TZA makes up about 60% of my short position, while FAZ is about 16%. EDZ makes up the rest.
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