3X Bear ETF Swings, Tight Trailing Stops And Pastamakers

Melancholy today for getting stopped out of yesterday’s nice swing trade which I had spent hours waiting for; a classic tale of setting your trailing stops % too close before going to bed because I couldn’t stay awake. (I’m in China, it was 4am). Bought 3x financial bear ETF (FAZ) at 48, near the top of the mid-afternoon rally expecting a 6-8 point gain on an S&P reversal at the top of it’s range; set the 5% trailing stop when it moved up to 50 and went to bed confident but got knicked oh so slightly for three minutes while dreaming of millions, stopping me out at 49.40. Heading back up as expected closing at 50.88 leaving me with visuals of homemade pasta coming out of one of those pastamaker machines. The FAZ Financial 3x bear trading range is a wider swing play than the similar BGZ (BGZ) Largecap 3x ETF.

Meanwhile, despite the plethora of doomsday realities lurking, lots of folks seem to be noticing the Baltic Dry Shipping Index recovering substantially off its plummet. paving the way for recovery optimism. With the market six months ahead of the economy, more and more of us are saying this really could be a bottom area around 800 to 850. This week I saw nothing in the action pointing to the plummet that “should” be happening. Like watching the mesmerizing pastamaker churning out spinach fettucini, it’s entertaining every time the market hits its upper or lower trading range, some expert is predicting THIS is the time its going to break out to the upside or downside declaring the new bull market or the final crash to oblivion and themselves the new guru.

Meanwhile, traders just keep playing the swings and Cramer entertains us. Yes, gold gapped up sweetly and spent the day like a tube of silicon filling the gap; could be new support.

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