Thursday, October 20, 2011

FAS vs FAZ (closing bell edition)

10:18 am (Hawaii) Euro banks down, US banks up. Well, there's NBG up 1.8%, but that's the exception. Of course it's a lot more fun sitting out than riding a whipsaw roller coaster. Flat, all cash. Stay tuned for the resumption of funny business anytime soon.

FAZ daily
Yesterday, it traded between 51.50 and 52.25 in the late hours.
Today, more like 49 and 50. Too spastic for me.

FAS daily
Pushed higher late in the day but the constant heave and ho
make the closing action irrelevant.
More of the same churning until the next
catalyst/Merkel-Sarkosy rumor/downgrade/etc.

Below, the 2-year charts for FAS and FAZ. Clearly, the time decay effect is what makes both more effective as short-term trading vehicles rather than holds. Over the long haul, traders who shorted both were better off than testing the long side, it would seem.

FAS weekly (2 year)
Hate the banksters or not, over the long term,
those bloodsucking pencil pushers show resiliency.
In other words, they find ways to get their way.

FAZ weekly (2 year)
The "easy" money was made in July.

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