SOLD -59 FAS @7.90

I sold my FAS at a loss! This is a horrible trade indeed because I've let my profit turn into a lost! I considered waiting for the bounce, but looking at the VIX, we haven't reached capitulation yet. So there could be some more downside before any rally can occur. But 810 on the S&P500 seem to be holding so far. We'll see how the day plays out.

From now on, I'm only going to day trade these leveraged ETF's. There is just too much working against them to hold overnight.

[caption id="attachment_1079" align="aligncenter" width="500" caption="3X Financials ETF"]3X Financials ETF[/caption]

[caption id="attachment_1080" align="aligncenter" width="500" caption="VIX"]VIX[/caption]

Posted 22 January 2009 in stocks.

BOUGHT +59 FAS @8.82

I'm back in FAS at 14:55 today. Today's market is almost the exact inverse of yesterday. I watched it climbed up steadily. When it tested the 820 and held with good internals, I decided to re-enter FAS.

I watched FAS broke 8.70 and then 8.80. It backed off a little but held above 8.60, so I entered FAS when it breaks 8.80 again. My stop was set at 8.50. FAS climbed throughout the last hour. I decided to hold on to it even though it tested 10. That is because of the high volume going into the close and it didn't look like it's losing any steam.

This is a good entry because I was patience and waited for the market to show strength and then further waited for FAS to break resistance before entering. Sure, I didn't get in at the bottom, but since I was stopped out a couple of times already, I wanted to wait for good confirmations before getting back into the game.

[caption id="attachment_1074" align="aligncenter" width="500" caption="S&P 500 intraday"]S&P 500 intraday[/caption]

[caption id="attachment_1075" align="aligncenter" width="500" caption="3X Financials"]3X Financials[/caption]

Posted 21 January 2009 in stocks.

BOUGHT +60 FAS @8.77

Day trade position only. I noticed a few financials are testing their long term lows and holding. Like C is hanging at \$3.0. So I'm putting in a quick bounce bet on the financials on this supposedly Obama rally day. Hard stop set at \$8.70 to limit my risk.

Update: I've been stopped out before even finishing this post!

Update 2: I've re-entered 62 shares of FAS for 8.19. FAS closed at 7.63. I will stop it if FAS stays below 7.50 after 10am tomorrow.

Update3: I'm out this morning (Jan 21) at \$8.07.

[caption id="attachment_1067" align="aligncenter" width="500" caption="S&P 500 intraday"]S&P 500 intraday[/caption]

[caption id="attachment_1068" align="aligncenter" width="500" caption="3X Financials Bull"]3X Financials Bull[/caption]

Posted 20 January 2009 in stocks.