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Direxion Daily Financial Bear 3x Shares FAZ

The Fund seeks daily investment results before fees and expenses of 300% of the inverse or opposite of the daily performance of the Index. The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day. The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80% of the funds net assets (plus borrowing for investment purposes). The index is a subset of the Russell 1000 Index that measures the performance of the securities classified in the financial services sector of the large-capitalization U.S. equity market. It is non-diversified.


ARCA:FAZ - Post by User

Post by Stocksnchartson Dec 02, 2010 10:49pm
174 Views
Post# 17793553

Math

MathIt's easy to argue with me but try and argue with the simple math:

In contrast with $SPX, the Financials ($DJUSFN or $Rifin) peaked in April and have been declining since at a faster rate.

On Nov 5, the financials retraced from the summer Aug low back up to only 61.8% to the April high. Remember $SPX hit slight new high.

More recently, Financials bottomed on Nov 29 and today retraced near 61.8% to the Nov 5th high. Again, this is much weaker than $SPX which is nearing 100% retrace.

Financials had a nice spike up today, but the bigger picture in the math is that they are consistently much weaker than the rest of the mkt.

Financials make sharp moves on a daily basis so we have to step back and look at the overall picture.

Financials have led lower since 2007 and continue to do so. This bear mkt from 2007 continues as long as financials are leading the way down.

SC

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