There are a few tickers that are trading havens.
FAS is a trading tool for Financials, AA and X are trading tools for Materials, LVS and MGM for Casinos …
With the financials under immense pressure again, it is well worth to take a look at the ETF that is tracking this sector. Instead of trading XLF, I choose FAS as they move in tandem, just at different rates. FAS moves 3X more than XLF. This is why you can split your investment into 3s. buying financials in stages, instead of jumping in all at one go.
It is simple to trade FAS. Split your committed capital into 3. Learn the trend of the financials. We are currently at the end of a bearish trend, there is gonna be a trend reversal anytime now. Buy 1/3 at this level. Remember that this is equivalent to buying XLF entirely. Should FAS drop below this level, place another order. If it goes up, place another order too.
FAS traded at $40 in April, and now it is at $20. This is a huge steal, considering that the economy is actually better than expected. We are experiencing more market noise lately especially with the lackluster unemployment claims.
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