Software & Finance

Stock Market - FAZ to Hold / Sell

Aug 19, 2010,  CBOE - Volatility Index (VIX) closed today at 26.44 up by 7.52%. Even the market is currently in a short term correction phase, I expect the rally in long term Treasuries may end sooner than the equity market correction.

TLT - iShares Barclays 20+ Yr Treas.Bond closed today at 106.16 up by more than 5% in the last 5 trading session.

Refer to my earlier article FAZ is a buy posted on August 5, 2010. FAZ closed at 13.28 on August 5, 2010. Today FAZ closed at 15.89 which is up by close to 20% (19.65).

Gaining 20% in just 2 weeks are amazing...! If you are speculator, you can consider selling your existing FAZ position.

It is not a good idea to initiate a position on FAZ or even FAS (Bull 3X) at current levels.

It is important to note that these are leveraged ETFs. Leveraged ETFs may not be suitable for all kinds of investors as it posses high risk if the market direction is not favorable to you. Also refer to my earlier articles on leveraged ETFs.

Leveraged ETFs - Posted on June 12, 2010

Option Price Calculator - Posted on June 05, 2010

Be careful when trading Leveraged ETFs!

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 Posted on August 19, 2010