RE: RE: RE: FAZ/HNUWell FAZ did reverse split 10 for 1 last summer. So it did actually trade at $200 during the financial crisis. With the reverse split, FAZ is now trading at $12 instead of $1.20, so the ETF did trade at the equivalent of $2000 considering the split.
The thing to remember with all ETF's is that there is rebalancing decay build into them. The decay on this one happens to be high since it is a 3X ETF. So the year high is deceptively high. However, there is also a compounding effect built into ETF's like FAZ so as the financials decline, this will rise with ever increasing dollar amounts.
Bottom line you have to be mindful not to sit in these ETFs for too long because of the decay, but when the financials do start to really plummet you have to be careful not to sell to soon. It will move up much faster than seems possible. Buy and hold is a perfectly good strategy on this for the next month or two.
The H&S pattern did complete as I suggested yesterday so look for an entry around these levels. This is likely the last chance in the 11's. I think we'll see it head back into the high 12's and then we can trade sideways for a while before the financials collapse in May.
SC