Thursday, June 4, 2009

Possible Future for FAZ

by popular request...

Ran the same numbers for FAZ, triple-short financial ETF, a la "Possible Future for SKF" (previous post). Comparison of FAZ, IYF, and BKX, with stock prices and index value as of May 22.

I just did the Case 5, where BKX would run all the way to Sept-Oct 08 level, and reverse all the way back to March low. FAZ would be a 10-bagger if you caught it at top of BKX, and if BKX did indeed drop back down to March low. Otherwise, there will be easier money to be made elsewhere (until P3 hits... for more, go to ex-SKFer Daneric's blog).

The best case for FAZ would still be the one in which BKX corrects right now to March low without going up much. Then FAZ would be about $20.

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