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Old 01-06-2013, 07:13 PM   Nav to Top 
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Originally Posted by Miles View Post
... The bottom line is that both of these ETFs are very unpredictable. Most people put FAS/FAZ akin to playing some roulette at a casino and I tend to agree with them. ...
FAS/FAZ track the Russell 100 index. You cannot apply technical analysis to FAS/FAZ and trade them simply because they follow the Russell 100 index. You have to apply the analysis to the Russell 100 index and trade FAS/FAZ. That is why monitoring some of the stocks from the index helps you.

Get the Russell 1000 index charts. In addition to the analysis you use you may have advance/decline data

advance decline

which could be used instead of monitoring 10 stocks from this index.

When it comes to the trading of ETFs that track indexes. It is logical to analyse indexes. FAS/FAZ do not follow supply/demand on FAS/FAZ. These ETFs follow supply/demand on the entire Russell 1000 index.
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