Wednesday, May 5, 2010
FAS down 66 but only 1.7% ?
We are having a very good streak of very violent days. For past 7 days FAS has had very large ranges. Either I can sit in awe frozen and watch the market unfold by itself or use what ever I know and the knowledge from other successful fellow bloggers and come to a logical conclusion and trade. I choose later. There are 2 main reasons I trade. In the long run it will beat the buy and hold and secondly it is exciting. I don't trade every signal. As long as I end up positive for the day I have done good.
When I woke up and saw FAS in pre market it was down $66. After a few minutes with the broker I learned that FAS had a 3 for 1 split. Why we need one now I never understood but some one decided we should so we do. That threw me off quite a bit, and I had to redo my Excel workbook for the split during early morning. May be next time Direxion may want to tell us in advance and do it after close. Nonetheless the market and FAS opened down hard this time on spain. It was not a Dino's KOD day but close. The low came in the 7th minute. Dino's KOD is only valid if the low happens in the first 5 minutes. The low came at 30.72. DMRM kicked in at 31.71. I went long at 31.71. Shortly plumbers came to do some work totally distracted me for the rest of the day. FAS topped out at 33.54 and I got stopped out at 32.47. Normally I would have shorted at 32.47 with my attention not completely on the screen I let it go for another day. The low since is 31.40 and my buy point is 32.4. FAS did hit the bottom of the envelope and is back inside in the 30 min with 77 period mvg avg. I have adjusted the bottom of the envelope to get better contact points. FAS is well below the DOMA and that is not positive.
Posted by Dino at 6:16 PM