Sorry for the bad pun, but I couldn’t help myself.

Today, I am going to analyze and discuss FAS and its antipode, FAZ.  What is an antipode you ask?  Wiki describes an antipode as “the region on the Earth’s surface which is diametrically opposite to another region.”  FAS  and FAZ are opposites in every sense of the word, as we will explore.

FAS and FAZ are both ETFs that seek daily investments results that are 300% of the price performance of the  Russell 1000 Financial Service Index.  What distinguishes FAS from FAZ is that FAZ seeks to reflect the opposite (or inverse) of the performance of the Russell index.

In my opinion, FAS and FAZ are tailor-made for day traders and swing traders.  Their extreme volatility and daily trading ranges make for a profit opportunity every day!  Both can be played at the same time since they are counter-indicated toward each other.

Let’s look at some charts!  Isn’t that amazing? There is no reason that a trader cannot trade both at the same time! The average daily trading range for FAZ is $2.67 and FAS’ is $1.42. That, to my mind, is a perfect setup for a trader.  Another thing that I have noticed about these two ETFs is that they tend to maintain their momentum for any given day.

If you can, by the chart or Wizetrade, determine the direction of the price movement, you can ride that movement for good profits.  FAZ and FAS are directly related to the news in the Banking sector.  If banks are going up, FAS will rise with them (and FAZ will fall).  Keep a close eye on the major banks and news about the financial sector to know which way to play these.

I believe that I have proved my point.  Now, go and make some money.  My goal is to always put my money where my mouth is.  I plan on trading these two ETFs aggressively next week and I will report back to you and let you know how I did.