Monday, April 20, 2009

FAZ - Financial Bear 3X Share ETF

Looking at a chart of the Financial Bear 3X Share ETF It apears that the ETF has bottomed. After 5 weeks of downside pressure there has been increasing positive upside volume coming into the price of the FAZ as of today. The FAZ is down -42.04% year to date. In order for a confirmation of upside movement, the FAZ would need to break its 5 week moving average at $13.31. If the FAZ breaks above $13.31 there will be more upside to come. Downside support on the FAZ ia at $8.90.

Upside movement in the FAZ would depend on the direction of the general market. If the Dow Jones Industrial Average, the Nasdaq and the S&P 500 continue to move lower the FAZ will move higher. The Ultra Short Etf's such as the SRS - Real Estate Short all face the same threat. Due to the suckers rally that took place over the past 6 weeks, we are not out of the woods yet. There is a 95% chance that the FAZ will continue to move higher. At the close of the market the FAZ ended the day trading at $11.63 up $2.73 or 30.67% on 235.2 million trading volume. In after hours the FAZ ended trading at $11.89 uo $0.26 or 2.24%.

The low on the Dow Jones Industrials last week was 7,870.48 with the 5 week moving average at 7,857. 37. Downside support on the Dow is currently at 7,540.81. To end the trading day the Dow closed below last week’s price low and the prior 5 week moving average. The Dow Jones Industrial Average ended the trading day at 7,841.73 -289.60 or 3.56%.

The investments listed are not buy recommendation please do your own due diligence or get help from a professional before investing.

By: Marlin Rolle

*** Please click on the chart below in order to enlarge its view. ***

No comments: