That Old Feeling

     My Strategy's 2009 results (so far) would indicate that I may be on to something. That being said, I've been tempted lately to stray off course, and resort back to the types of ideas and trades that never used to pan out so well. Take for instance FAS. This etf (exchange traded fund) is pretty much at all time lows. Simply put, (from Yahoo! Finances) "it seeks to replicate, net of expenses, 300% of the daily performance of the Russell 1000 Financial Services". Here's the chart of FAS (or 'Forget Any Strategy') since it's inception:

     Looking at the last two years (and the wonderful debacle the financial world has found itself in), one may tend to think these 3 things about FAS:

1. It has to have either hit bottom, or come dangerously close. I mean really, how much farther could it drop- it's like $4 now, after being above $50 not too long ago.

2. Man, if I can buy a couple thousand shares Monday, it's sure to reach at least $6-$7 within the next few trading days with all it's violent swings- and I'll look like a cyborg on Covestor!

3. This is the easiest money I could ever make- I'll be able to pay off that credit card debt I got from purchasing every Timothy Sykes DVD!

     The catch is simple. FAS (and the market as a whole) could continue it's slide for the next 6 billion seconds (didn't do the math on that). No matter how 'Candy from a baby' this trade may appear, you'd be basing it on what? Gut feelings, the market 'owes you one', it's in play because Muddy's running a contest on it? (Btw, my guess for that contest, found here, is $7)

Fighting every urge to 'gamble',

Evan