Direxion Daily Financial Bull 3X Shares (NYSEMKT:FAS)

starbucks4ever (99.54) Submitted: 8/22/2011 4:46:43 PM : Start Price: $19.53 FAS Score: +9.81

This is not an ordinary pullback in banking stocks. When BAC drops from $17 to $16 for no apparent reason, it is a buying opportunity. But when it drops from $17 to $7, it means there IS something that you don't see. A major bank does not lose half of its market cap through some random fluctuation. Yes, at some point FAS will be a future ten-bagger. But during the last recession, FAS started a bull run only after we a) learned that banks had a problem with their balance sheets, and b) learned what measures were being taken to address the problem. Right now, we are in a stage prior to a), waiting for the shoe to drop. So whenever FAS starts going up, it will be AFTER we learn what was ailing the banking system during this bear market, and certainly not BEFORE that. For now, there is nothing ahead for this segment except for the flocks of cockroaches lurking unseen in some crevice of the financial system. And FAS looks in a good position to lose 95% of its value before starting its next 1000% bull run.