We have artificially propped up market condition with high prices and low volumes on any matrix. Financial sector is not untouched by it. Recent rally in financial sector feels more like a speculation than value investment. But we're all allowed to speculate so power to all market participants.
However the rally calls for pullback and there's a easiest trade case to be made about FAZ which is 3X leveraged Financial Bears ETF. with great upside returns due to a pullback on fundamental levels. Be aware leveraged ETF is not a product to hold for a long time so quick returns enthusiast should understand risk before buying. Good Luck !
Trade closed: stop reached
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Well you're never wrong until you're. My strategy has reached the loss threshold! I would still believe that pullback is inevitable, not without fear that the what could e a little pullback becomes frenzy and ruins market liquidity. But what are the chances of back to back such cases, right! Be vigilant out there good luck!
I would like someone to explain to me how $ FAZ can be at $ 16.72 ??? in the maximum historical of February before the pandemic it was quoted at $ 25 this has to be corrupt manipulation
Onewestsideq
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@davidfox08,
It is indeed counter intuitive trend we are witnessing,Sir look at this as protection of interestS by institutions .
Two observations
1. Someone putting backstop orders in after hours market worth of a million each day and than cancelling them eventually.
2. FAZ continuously trading at discount to NAV and un weak correlation to FAS’s movements .
However all these information and profound public opinion doesn’t move market, so understand you risk specially dealing with leveraged and structured products and Good luck sir !