sold FAZ -6%, buying FAZ again, shorting DDRX

Last update we bought FAZ and announced we'd close the position if it traded below $9.

Specifically, we wrote :

"If FAZ trades as low as $8.94 we will close the position intraday and will not advise such after the fact in a new posting in order not to waste time and space on the obvious. That is our nominal stop level. If triggered, we will diarize the sale the next time we post a trade idea."

The open was $9.49 so the loss on that speculation was almost 6% as unfortunately it moved below our stop the same day we bought it. Today FAZ closed much lower at $4.40 so we're glad we bailed out per our plan.

At the current price, with the markets having come this much higher since late April, we desire to again own FAZ this time less as "wild speculation" and more as additional insurance against falling markets. We again go long the Direxion Financial Bear 3X ETF, FAZ.

This is something that must be totally understood and its leverage respected. Due to the extreme volatility inherent in such instruments we will close the position for a loss immediately should it trade below $4 Specifics on this below. That's roughly a 10% risk based on today's close of $4.40

If FAZ trades as low as $3.94 we will close the position intraday and will not advise such after the fact in a new posting in order not to waste time and space on the obvious. That is our nominal stop level. If triggered, we will diarize the sale the next time we post a trade idea. Should the position move in our favor we will post an update outside of market hours once we decide to sell, as per usual.



How's this for an incredible chart?



We're not normally eager to fight a strong trend, but this time we will by shorting Diedrich Coffee, DDRX, last closed at $18.35

If DDRX trades over $20.20 we will close the position intraday and will not advise such after the fact in a new posting in order not to waste time and space on the obvious. That is our nominal stop level, representing a potential loss of roughly 10%. If triggered, we will diarize the sale the next time we post a trade idea. Should the position move in our favor we will post an update outside of market hours once we decide to sell, as per usual.




We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the stocks we do, or for mentioning any stocks or companies in this blog. If we hold existing positions we divulge the fact, otherwise we generally buy and sell as detailed here. This blog is merely a diarizing of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

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