can some one tell me why faz is not going up as fas is..shoild i sell it i bought it at eight $....help
Answers
136 points
mgspony answered 6 months ago …
I have no idea the reason for the difference between these two. However, the leveraged ETF's are geared for a multiple of the daily figures, in my opinion, they are not for long term holding and require nimble trading. I would not hold one of these for very long, if at all. Gay
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435 points
larryat36 answered 6 months ago …
FAZ is not meant to go in the same directiom as FAS. One is meant to triple the market on the way up an the other to triple the market on the way down. FAS up FAZ down, so they would progress in opposite directione. Should you sell it. YES please do not buy these instruments that you do not under stand. These are not instruments to be held they are only short term as they loose there effect over time quickly. Hope this helps some.
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alanj answered 6 months ago …
FAZ is a triple Ultra Short Financial ETF. FAS is a triple Ultra Long Financial ETF. When the financial stocks or indexes are heading up FAZ will go down and FAS will go up. When the financial market is headed down FAZ will go up and FAS will go down. They are opposites to one another. Be aware that the Ultra ETF's lose value over time. For this reason they ARE NOT to be used as a long term investment. Many traders will only hold these for a couple of days to maybe a week. They buy on the dip and sell on the peak.
Right now the markets are very close to being overbought but the trend is up. (Markets can continue in an upward trend even when overbought) The NYSE Bullish Percent Index is at a 2 year high. Which is a very strong indication that the markets are very close to a trend reversal.
I would sell FAZ now as the markets just recently dipped and looks as if the markets are heading back up. If they do head back up FAZ will lose value. So sell now. The S&P's next area of resistance is 940. If it doesn't break through, the markets will most likely change trend direction and head down. If the trend does change to a bearish trend buy FAZ and sell FAS. (I'm assuming you are also holding FAS since you mentioned it.)
